You are here: Home » Companies » Industry
Business Standard

2018 will be a better year for Indian IT, say experts

V Balakrishnan said Indian cos' ability to grab growth opportunities is critical

Press Trust of India  |  Hyderabad 

Infosys' ex-CFO V Balakrishnan

With the doing well, Indian IT can look forward to a better year in 2018 on the back of growing tech spend and demand from clients, according to senior figures.

Noting that the largest market for Indian IT is the US, former CFO of V said their ability to grab growth opportunities is critical.

"(The) is doing extremely well. I think they are still growing 2-2.5 per cent, good growth for that economy," he told PTI.

"If you look at the Gartner report, they talked about overall IT spend going up by 4-4.5 per cent this year. I think there is growth. The ability of the company to take on growth is critical. I think growth opportunities are there," added

He said if the world's largest economy is doing well, Indian IT "have a hope".

"They (the US) are talking about raising interest rates because growth is good, the unemployment rate is very low, (US President Donald) Trump is talking about cutting corporate tax, so the economy is doing well. As long as the does well, there will be opportunities for Indian IT companies," said.

On NASSCOM projecting Indian IT export to grow 7-8 per cent in 2017-18 and domestic market expanding 10-11 per cent, he said, "it looks okay for the year".

"But I think the next year should be good if the continues to do well," said.

Another ex-CFO of Infosys, T V Mohandas Pai, said he has read many analysts' reports in the US that indicate that "the work is coming to big system integrators because tasks have become complex".

"I spoke to people and they say digital work for all big is growing in double digits. Rest of the traditional business is not growing much. Digital is growing very rapidly and for the big fellows digital is 20-25 per cent of the business. So, I think there is good growth," Pai said.

According to Balakrishnan, overall global IT spending is around $3.7 trillion every year.

"Of that, one-third is IT services; so there is still a lot of spending happening on the legacy side which goes into maintenance and building some core applications. That has not gone away.

"The incremental spending is happening in the digital area, and there, are building capabilities trying to play to ecosystem and go to the clients. Both are happening. I don't think the legacy services are totally gone. A large part of it is still there," added.

First Published: Mon, October 23 2017. 15:32 IST