The today and tomorrow of Indian IT services

MANAGING DIRECTOR

Tushar Sahoo tushar@gecmediagroup.com

EDITOR

Ayushman Baruah ayushman@gecmediagroup.com

CO-FOUNDER & CEO

Ronak Samantaray ronak@gecmediagroup.com

GLOBAL HEAD, CONTENT AND STRATEGIC ALLIANCES

Anushree Dixit anushree@gecmediagroup.com

GROUP SALES HEAD

Richa S richa@gecmediagroup.com

PROJECT LEAD

Jennefer Lorraine Mendoza jennefer@gecmdiagroup.com

SALES AND ADVERTISING

Richa S richa@gecmediagroup.com

DIGITAL TEAM

Vijay Bakshi - IT Manager

DESIGNED BY

Creative Lead

Ajay Arya

Designer

Rahul Arya

Assistant Designer

Vikas Chandra

PRODUCTION, CIRCULATION, SUBSCRIPTIONS info@gecmediagroup.com

War, pandemic, recession, and inflation – these are some of the buzzwords that appeared in recent news headlines. These are certainly not the best words for any business across the globe.

Indian IT services companies are witnessing muted revenue growth as there is increased cautiousness among clients around decisionmaking due to heightened uncertainties arising from the banking crisis in the US and an overall challenging macroeconomic environment.

However, the long-term growth story remains intact as technology spends continue to remain robust barring some slowdown in specific sectors. Given the US is the largest market for Indian IT services companies, the tremors are felt quite hard but also likely to subside in the medium to long term.

The pandemic in the last two years has accelerated the need for digital transformation to keep organisations competitive and resilient against market disruption. As we move ahead into some economic uncertainties, enterprises embracing digital technology seems to be the only way forward. The accelerated pace of investments in digital seems to have slowed down but the bigger picture remains intact.

Companies are exploring emerging markets in the Asia Pacific region – the next growth story. According to IDC, the digital transformation spending in Asia Pacific is forecast to reach $543 billion in 2022, a yearon-year growth of about 18% from 2021.

The Asia Pacific region accounts for almost 30% of total digital transformation spending worldwide followed by the US. Asia Pacific continues to be seen as having a high growth potential as advancement in technology adoption continues to improve. Organisations continue to allocate their digital transformation investments towards several strategic priorities which will be accomplished as they grow their digital footprints.

This month’s cover story offers a snapshot into the future of Indian IT services companies and their fourth quarter earnings. Many of the IT companies are yet to announce their earnings, so we could cover only some of them but they do provide an indication of where the industry is headed.

We covered the earnings of India’s top three IT services companies by revenue – Tata Consultancy Services (TCS), Infosys, and HCLTech. The revenue growth forecasts for FY24 were weak compared to what we saw in the previous years when the industry grew on the back of pandemicinduced demand for digital transformation.

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The May issue also has some opinion articles on a wide array of topics ranging from technology in the HR industry to banking technology to digitalisation in the chemicals industry and the power of data itself.

Turn these pages for a deep dive into the future of the Indian IT services industry as well as to get a flavour of digital transformation across different sectors. Happy reading!

Ayushman Baruah Editor - Asia, GEC Media Group