Changing Face Of Indian IT Industry

BANGALORE: The age old largest private sector of India is all set for a change. Indian software companies like Wipro and HCL Technologies are expected to set in rapid transformation in the IT sector. Wipro reports its revenue in the fourth quarter went down by 1.2 percent due to cross currency effects.

Though the company expects a best top line growth of upto 1percent in Apr-Jun span but their revenue can fall by 0.5percent. Though HCL maintains a static position since the previous quarter, yet, its operating margin fell by 10.5%. This had a negative effect on Wipro share markets that made the company’s shares pushing to 3.2% lower on the National Stock Exchange.

Bengaluru-based mid-tier company Mindtree and India's biggest software company Tata Consultancy Services estimates ‘softness’ in demand due to which there’s hardly any fluctuation in their top line growth.

Partha Iyengar, Head of Research at Gartner India said, “This is just the phase one of the transition. For most part, Indian providers have been transactional, now they need to look at sales quality and start having different kind of sales conversations.”

On the contrary, Nasscom has expressed concern about the growth rate of IT sector and is predicting an export growth rate of 12-14% from 13-15%.

Wipro’s Chief Executive TK Kurien comments, “All I can say is that the next year will be better than this year.” Wipro’s top line growth is expected to go down in the first quarter of 2015-16 in the range of $1,765 million to $1,793 million.

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