IT Majors log the Strongest Quarters: A Promising Future Ahead
In the post-pandemic times, for any business be it small or large, in order to navigate through the challenges and continue to grow – adopting efficient digital transformation measures becomes the most important step forward. This is where the Indian IT sector emerged as the major contributor. It is because of this huge demand for digital transformation, that has led to the Indian IT sector returning back to a positive single digit growth – according to a report published by Fitch Ratings titled ‘Spotlight: Indian IT Services Sector”.
Nearly all the major IT companies operating within India like Bengaluru-based IT firm Wipro, Accenture, Apple operations in India, to name a few, reported robust growth with the turn of the new year after a flat 2020. In the month of January, Wipro for instance, posted a 20.09 percent YoY growth with a net profit at around 2,998 crores, the highest in the company’s past 36 quarters. Furthermore, global IT firm Accenture’s blockbuster February returns this year laid the foundation for other tech firms to follow suite and conjure up a strong show when it comes to the Indian IT stocks. During the beginning of the year, shares of software services firms such as Infosys and Tata Consultancy Services also hit never seen before highs. Finally, this is what JM Financial Analysts had to say regarding the IT sectors recent robust growth “Akin to what peers like TCS are suggesting, Accenture also believes that we are in an era of compressed digital transformation with the clients accelerating their cloud journey driven by the pandemic." “Of course, valuations are also on cloud nine like the rest of the market. But, at least, in the case of IT services stocks, the outlook has markedly improved post-covid.”
Overall, India reported a 45 per cent increase in the use of AI, the highest among any other country, while the US recorded a 35 per cent rise, the UK 23 per cent and Japan 28 per cent respectively, following the outbreak of the Pandemic. Additionally, around 70 per cent of enterprises surveyed by PWC India are said to have adopted AI, as opposed to around 62 per cent in the previous year.
Resilient IT Sector gears up for rapid growth
Covid-19 may have de-railed many economic sectors from out of the blue without caution, however, the Indian IT sector on the other hand showed great resilience and with the turn of the new year, has not only recovered to positive digits but is also showing signs of robust growth. Rapid rise in the number of infection cases forced many IT firms to adopt work-from-home measures. At one point of time, almost 98 percent of the total Indian IT workforce was working from home. As the new fiscal year began, IT majors right from TCS, Infosys to Cognizant were able to close monumental billion-dollar deals as well.
This year has been a memorable year already for the Indian IT sector which saw not only the rapid adoption of Cloud and AI technologies but also witnessed Airtel announcing the country’s very own 5G network ready to be deployed. Many industry experts have pointed out that the Pandemic has pushed acceleration of digital transformation which otherwise would have taken years to come. And, Indian IT companies are a much bigger fish in the global IT pond than ever before. Let's not forget the probable resurgence and discussions around cryptocurrency.