Rating agency ICRA said IT services companies are expected to register dollar revenue growth of 9-12% in FY22, partly due to accelerated demand for digital technologies from enterprises globally and partly from last year’s low base. Is.
ICRA on Tuesday said industry growth is expected to moderately to 6-9% in FY13, partly also due to base effect.
Deepak Jotwani, Assistant Vice President and Sector Head, ICRA said, “In line with the growth trajectory observed in the recent quarters, Indian IT services companies are expected to report healthy growth in the near term on account of the above favorable factors.”
He said growth has been supported in all major verticals like BFSI, Telecom, Manufacturing, Retail and Distribution.
However, the strong demand for digital technologies and the lack of sufficient skilled manpower to service it have raised concerns with the workforce at the higher levels. Companies are reskilling employees to meet this challenge.
In addition, they are also able to achieve higher employee productivity through increased deployment of technology.
Hiring by IT companies is at an all-time high due to strong demand and the net growth in the last four quarters is picking up sharply, Mr Jotwani said.
ICRA said IT services companies are focusing on increasing the share of fixed price contracts as it assures better revenue visibility.
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