Price premium concerns continue for IT sector on cramped client spending

The industry has continued to depend on execution levers like expanding margins, with the exception of TCS which made the most of rupee depreciation in FY19

Digital traction has remained strong over the past year, but software providers need to ramp up the digital portfolio if they want to command a price premium note sector analysts. Q4 witnessed a unanimous view from all IT providers that client spending will continue on track, especially in digital technology, yet pricing premium on these projects seems far off at present.

In the absence of strong price premium, IT sector has continued to depend on execution levers like expanding margins, with the exception of TCS which made the most of rupee depreciation in FY19.

“Even at this point, almost 70