IT fortunes shifting to Indian shores as clients move to execution stage

Infosys saw $1.57-billion large deal wins across 14 clients with 30% net new TCV

The last quarter of 2018 saw a shift in the fortunes of global and Indian information technology (IT) service companies. The former reported slower growth; domestic majors TCS and Infosys reporting a strong deal momentum was driving their revenues and outlook.
 
This is true of a general shift, say analysts, as digital projects move from a consulting phase to actual implementation, where Indian players have a clear pricing advantage.
 
In the September-November quarter, Accenture’s consulting bookings remained flat at $5.9 billion; its total of order bookings at close to $10.2 billion was down two per cent from the earlier quarter. Both numbers came below analysts’ expectations.
 
In contrast, during the October-December quarter, TCS and Infosys reported strong bookings across divisions, surpassing analyst estimates.
 
In the early stage of their digital transformation, say analysts, companies tend to seek more hand-holding to chart their execution roadmap and strong consulting capabilities come into play. This is an area were the likes of Accenture, EY and McKinsey have a clear edge.