Indian IT Companies Eye Deals Worth $100Mn as U.S. Economy Revives

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Bangalore: Hopes in the recovery of the U.S. economy are indeed high. Global firms have now become more optimistic and 58 percent of them are now ready to get their tech budgets raised to ten percent, while it was only one percent earlier. Software companies in India too have begun to place their focus on bigger deals, as found by a survey from CLSA, a global equity brokerage house.

The first quarter of this year has seen an increase of nearly twenty percent by the BSE IT index, which serves as a benchmark for technology shares. Hopes in corporate spending by those in the continent of Europe and the U.S. are very high. Software companies in India now see a promise of increased opportunities in business.

"We are witnessing a turnaround in technology spending by global companies. Many global clients of Indian software companies are releasing funds from their budget, and overall, there's a big change in sentiment," says Abhishek Shindadkar, research analyst at ICICI Securities, as reported by Biswajit Baruah of ET Bureau.

"The tier-I software companies are likely to benefit most from the increased global technology spending, the repeat business from existing clients is also likely to remain stable. Around this time, many big contracts from global companies come up for renewal, and one can expect Indian software companies to bag new orders," he added.

IT companies in India will in fact see an opportunity with a renewal of a hundred billion worth of deals that are expected to come up this year, as revealed by CLSA.

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