Major Indian IT firms raised their revenue growth guidance during the October-December quarter earnings season, reflecting strong demand for cloud and digital-based services as customers invest in various stages of their digitization journey. Based on strong demand and execution, Infosys raised its FY12 revenue growth guidance from 16.5-17.5% to 19.5-20% in constant currency.
“We are in a position where all the choices we have made in the digital, cloud and new areas over the past several years are in line with our customers… Our performance has been good and that is what really gives us the confidence to enhance our guidance,” Infosys Chief Executive Officer and Managing Director (CEO and MD) Salil Parekh said after the results.
Wipro, which provides guidance for the quarter ahead, expects its fourth-quarter revenue to grow 2-4% in constant currency, versus full-year growth of 27-28%. According to Wipro, its cloud ecosystem revenue grew at an accelerated 30% year-on-year.
In an analyst call after the results were announced, Wipro chief executive Thierry Delaporte explained that until three to four years ago, cloud discussions with CIOs used to take place, while CEOs didn’t pay much attention to it “because it had to be an infrastructure or There was supposed to be a back-office discussion. ,
“Today the cloud is a way for organizations to become giants, create more opportunities, be innovative, develop solutions, connect with new customers. I don’t think I’ve seen a company yet that can say it’s on the cusp of cloud transformation.” We are still in the early stages of cloud transformation across industries, so this is a big wave ahead of us,” Delaporte said.
Tata Consultancy Services (TCS) usually does not give formal revenue growth guidance, but it has also indicated an upbeat outlook. “Cloud adoption will continue to drive significant amounts of demand in the short term. We call this Horizon One, essentially shifting workloads to the cloud and serve as the core value proposition,” said Rajesh Gopinathan, CEO and MD, TCS. Including using infrastructure.
Even with the majority of the workload moving to the cloud, TCS continues to look for opportunities in Horizon Two and Horizon Three.
“Horizon two is when the core capabilities of the cloud are leveraged to generate significant change at the company level. These core capabilities can be the seamless fabric of the cloud (like) security, analytics… three,” Gopinathan said. Among hyperscalers, we are tracking over 250 native capabilities, which are now increasingly being adopted among our customers.”
Gartner expects the cloud to be at the center of new digital experiences as global cloud revenue is expected to reach $474 billion in 2022, up from $408 billion in 2021.
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