Indian IT firms set to outperform as global IT spending increases
By siliconindia   |   Wednesday, 13 April 2011, 00:59 IST
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Indian IT firms set to outperform as global IT spending increases
Bangalore: With the IT spending increasing day by day by overseas clients,Indian IT firms are all geared up to bag businesses from key clients and are also looking forward for strong quarterly results in the current fiscal year. Global IT spending is expected to increase by 5.6 percent in 2011 to $3.6 trillion. IT spending has resulted with increase in pricing, and salary hikes as well. The U.S. economy which was reeling under laymen crisis and economy dip has now shown signs of recovery. This in turn has boosted the technology market all over the globe. Top three technology firms, like TCS, Infosys and Wipro, who maintain IT operations for several Fortune 500 companies, are expected to see profit growth of 14 percent to 22 percent for the fourth-quarter ending March 2012. In April, research firm Forrester forecast the U.S. technology market to expand 8 percent in 2011, up from 7.4 percent projected previously, with software, IT consulting services and technology outsourcing growing faster than last year. Since the U.S. is the largest market for the Indian technology firms, it plays a vital role in terms of deals, hiring targets and salary rise. Companies could raise salaries by 10 percent to 15 percent on average this fiscal year, analysts said. However, some of them expect higher billing rates to offset the effect of salary increases on margins. According to analysts, major growth will be led by global BFSI (banking, financial services and insurance) vertical, where M&A activities have necessitated IT services, as well as verticals like manufacturing, which were slower to start spending and are now seeing increased deal flows. Among the biggies TCS will show strong growth of 32 percent annually, Infosys is expected to grow 25 percent annually and Wipro to grow by 16 percent.

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