Tough times for IT

Companies have to rejig their business model

As the spreading coronavirus pandemic takes its toll on globalised value chains, India’s most integrated sectors are clearly the most exposed to downside risks. Among those is the information technology enabled services sector (ITeS) stocked with national champions such as Infosys and Tata Consultancy Services (TCS). The global demand slowdown will obviously negatively impact their order book going forward. The 2008 global financial crisis had a strong effect on ITeS growth. The sector was expanding exports rapidly prior to the crisis, with 30 per cent growth in 2007-08, according to analyst reports from Nomura. But in the two subsequent financial