IT negotiates a tight corner
Strange as it may seem, drawing up a standard for the Indian IT industry has become a difficult task. While the common concerns are slowdown in client decisions, pricing decline, currency issues and margins, the impact on each has varied. With differentiation in services and customer concentration coming into play, the sector’s dynamics are changing. Long-term focus of the country’s software services biggies hinges on growing newer technologies such as cloud, mobility, big data and social media, which are at present small contributors to the overall revenue.
IT majors are also giving geographical spread a serious thought in addition to the focus on newer offerings and high margin businesses such as consulting and analytics. During the October-December period most of the top-tier players recorded robust growth beyond its traditional key markets US and Europe, which account for close to 80% of the country’s IT export revenue.
Infosys recorded a bumper 44.7% sequential growth in India domestic business, while rest of the world grew 7.4%. For India largest IT company TCS, India grew 4.8% sequentially. Wipro posted a growth of 3.7% in India and Middle East quarter-on-quarter. Though companies are trying hard to reduce its concentration on America for their revenue, it will continue to be a telling factor for the industry. Currently Infosys
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