Large companies expect increased investment in technology, which will lead to spending on large digital programmes, Infosys chief executive officer and managing director Salil Parekh has said.
“What we’re hearing from clients, especially large companies, is that over time, more investment will flow into technology,” Parekh told Moneycontrol at the World Economic Forum in Davos on January 23. “This will translate into large digital programmes in the future.”
The IT veteran’s comments come at a time when the industry is poised for a turnaround after multi-decadal low revenue growth and hiring rates.
Parekh also highlighted the positive economic sentiment in key regions. “In my interactions with clients, there’s a lot of optimism about what they see in the US. Most of them believe that the US economy, with all the changes underway, will grow faster and become more favourable for business,” he added.
Europe is focused on improving competitiveness, with Nordics countries and Spain already doing well. The Nordic countries are Denmark, Finland, Iceland, Norway and Sweden.
As businesses globally prepare for growth, Parekh said he sees a shift in the nature of IT deals. While cost take-out deals remain dominant, discretionary spending in financial services and retail is beginning to return, particularly in the US and Europe.
Speaking to the media after declaring the December quarter results, Parekh said Infosys is seeing a revival in the European Financial Services sector too.
Also read: Large deals pipeline strong; underlying sentiment positive, says Infosys
“Last quarter, we had seen discretionary becoming good in financial services in the US. Now this quarter, we have seen financial services in Europe also, the discretionary is showing signs of improving,” Parekh said on January 16.
Around 3,000 leaders from more than 130 countries are participating in the 55th annual meeting of the World Economic Forum in Davos, with “Collaboration for the Intelligent Age” as the theme this time.
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