Fis Logo

Indian IT services firms set for robust growth, attrition a concern – Business Standard

Topics
IT services | Attrition  | BFSI
IANS  |  New Delhi 
https://mybs.in/2ZjoRwb

Driven by an uptick in key verticals such as BFSI, telecom, manufacturing, retail and distribution, the revenue growth of domestic is expected to be around 9-12 per cent (in dollar terms) in FY2022, a report said on Tuesday.
Despite the growth, concerns have emanated from elevated levels for the industry due to strong demand for digital technologies and lack of adequate skilled manpower to service the same.


According to investment information and credit rating agency ICRA, the growth will be driven by robust demand for digital technologies from enterprises globally, and partly on a low base of last year due to Covid-19 impact.
Industry growth is expected to moderate marginally to 6-9 per cent in FY2023, partly also on account of the base effect.
Carrying forward the momentum from recent quarters, ICRA's sample of 13 IT recorded revenue growth of 17.6 per cent in Indian rupee terms and 17.3 per cent in dollar terms in Q2 FY2022.
"In line with the growth trajectory witnessed over recent quarters, Indian are expected to report healthy growth over the near term due to aforementioned favourable factors," said Deepak Jotwani, Assistant Vice President & Sector Head, ICRA.
"Companies are reskilling employees to overcome this challenge. Moreover they have also been able to achieve higher employee productivity through increased deployment of technology. Hiring by IT companies is at an all-time high buoyed by strong demand and net addition over the past four quarters has been increasing exponentially," Jotwani elaborated.
Moreover, companies remain focused on enhancing the share of fixed price contracts as it assures better revenue visibility and also allows for higher deployment of offshore resources where the salaries are 60-70 per cent lower, coupled with better utilisation of manpower across such projects and deployment of automation.
The share of fixed price contracts has remained between 60-65 per cent over the past three years.
"There was some increase in H2 FY2021, which has tapered to 61 per cent levels in Q2 FY2022 given the higher share of new contracts and mix of contracts secured," the report said.
--IANS
na/ksk/
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor
PREVIOUS STORY
NEXT STORY
Copyrights © 2021 Business Standard Private Ltd. All rights reserved.
Business Standard
Upgrade To Premium Services
Business Standard is happy to inform you of the launch of "Business Standard Premium Services"
As a premium subscriber you get an across device unfettered access to a range of services which include:
Business Standard
Premium Services
In Partnership with Fis Logo
Dear Guest,
Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard

source