Wipro, for the time in over 10 years, has hit the best ever score in the March quarterly results as profit and revenue rose 27% and 3.4%, respectively. The IT services firm has put a forecast of 2-4% growth in the June quarter, with the aim to have a two-digit expansion—another first in a decade. Infosys, which reported robust numbers, is forecast to grow 12-14% in the year ahead, similarly, TCS is also expected to grow in double-digits.
Tech Mahindra had entered into a strategic partnership with RAG International, a Swiss technology group with a focus on aerospace, for IT infrastructure and digital transformation. The Pune based firm will accelerate the consumerisation of digital services, provide RUAG with a digital platform for employees by using next-gen service. The programme will also include digital service management, cloud transformation, services automation, compliance and control.
Tata Consultancy Services (TCS) on Thursday became the most-valuable IT services company globally as it surpassed rival Accenture in terms of market capitalization. TCS valued at Rs 10.6T whereas Accenture valued at Rs 10.52 T followed by IBM at Rs 8.67T. Analysts said that the key aspect that improved TCS’ performance compared to the last quarter was a sharp bounce back in key growth verticals like BFSI, Retail & CPG and Lifesciences.
As per ICRA, the Credit rating agency, IT and ITes firms in India may see a consolidated drop of 3% in their revenue in FY 21. The financial institution said that earlier it was supply constraints, which was resolved in the quarter, but the pandemic has impacted the overall demand. ICRA, before the pandemic, projected a 6-8% growth for the sector. These IT companies generate 80% of their $190 Bn from the US and Europe.
The COVID-19 pandemic has not only affected health but has also left thousands of people unemployed. However, IT remains obscure from this effect of the pandemic. With the sudden and massive switch to remote working, the demand for cloud computing, and WFH solutions climbs drastically and so does the demand for these professionals. Data analysts/scientists, cloud engineers, cybersecurity experts etc are and will be in high demand.
Infosys, Cognizant, TCS and Wipro service — may see business from the US retailers fall by 50% or more this year. Some of the big retailers in the US like Neiman Marcus, J Crew, JC Penney have shut stores and has filed bankruptcy or contemplating it. This could blow away their investment on IT software and services — billing, data management, app testing and management — they use. The overall IT budgets in the segment may drop 50-75% over the next three to four months.
India’s IT sector seeks to change taxation and labour laws as over 50% of the workforce could permanently begin to WFH post-pandemic also. Nasscom will soon be submitting a detailed report to the government. IT industry contributes 8% to India’s GDP, 46% in the services exports, as software exports stood at $14bn in FY 2020. The successful transition of WFH in lockdown has prompted large-scale shifts in work models, with TCS looking at 75% of its people WFH by the year 2025.
The top five ITes firms – TCS, Infosys, HCL Tech, Wipro and Tech Mahindra together added 66,500 employees in FY20, against 87,060 in FY19. Automation of the mundane task and slower business growth resulted in a 25% drop in hiring. Due to COVID-19, they have also suspended new hiring but promised to honour job offers already made. HCL Tech, as an exception, will hire 15,000 freshers. Together they employ around 1.14mn of country’s 4.3mn tech workforce.