Domestic IT services companies are expected to register revenue growth of 9-12% in FY12, driven by accelerated demand for digital technologies from enterprises globally and partly due to the COVID-19 impact, the rating agency said. This is due to the low base of the year. Icra said on Tuesday.
Icra said in a statement that the industry growth is expected to moderately to 6-9% in FY13, partly also due to the base effect.
Deepak Jotwani, Assistant Vice President and Sector Head, ICRA, said, “In line with the growth witnessed 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 added that this growth is supported by gains in all major verticals like BFSI, Telecom, Manufacturing, Retail and Distribution.
However, the strong demand for digital technologies and lack of adequate skilled manpower to service it has raised concerns for the industry at 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.
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