Page 3 - It Services Industry

IT services sector's revenues may contract up to 3% in FY21: Icra

In its report, domestic rating agency Icra also said that the profit margins for the sector will go down as the growth slows down

Hexaware plans voluntary delisting, board to discuss proposal next week

Analysts see delisting as a move towards making the company leaner before any further step of a merger or complete

Exports likely to improve in May, contraction expected to be 30-35%: Goyal

Addressing the Digital Summit on Exports organised by the Confederation of Indian Industry (CII), Goyal said he expects the fall in exports to narrow to 8-10 per cent in June.

Top 10 biz headlines: IT firms on cost-cutting, PE players' post-Covid plan

Here are top 10 business headlines on Wednesday

Revenue bites: IT firms go aggressive on cost-cutting amid Covid-19 crisis

Travel expenses trimmed and salary hikes put on hold as industry fights slowdown and demand uncertainty

Coronavirus scare: IT services firms draw business exigency plans

With uncertainties around growth outlook, most companies are likely to go slow on their payback plans to shareholders

Coronavirus impact: Infosys revenue growth likely to decline in FY21

However, the IT services firm is better-placed to handle the slowdown arising from COVID-19.

India's IT services and business to grow 6.9% to $13.3 bn this year: Report

According to the IDC's report, the IT and Business Services market is further expected to grow annually by 6.8% to be valued at $14.2 billion by December 2020

Mid-cap IT firms stumble through Q1 over client pressure, H1B visa costs

Barring Mphasis, the performance of most companies has been lacklustre, as client spending took a major setback for these vendors

Automotive sector becomes the new sweet spot for IT services firms

Most of the IT services players are seeing a spike in demand from the sector.

Big deals come with bigger labour costs for Indian IT services companies

Almost every large cap and midcap IT services player has reported record deals this quarter.

IT majors might disappoint in Sept quarter

The July-September quarter is usually a strong period for India's top information technology (IT) service companies but this one is likely to be different. Analysts estimate the sequential revenue growth on a constant currency basis in that quarter for the top five IT companies at no more than two to three per cent. Further, the expected revival in spending in the key segment of banking, financial services and insurance (BFSI) is also unlikely e soon, affecting revenue growth of the sector in FY18. Analysts are also cautious on the other key segment of retail. Among the top ones, HCL Technologies and Tech Mahindra are expected to lead with constant currency growth of 2.5-2.7 per cent; Wipro is see no more than 0.6 per cent.Analysts at JM Financial say the absence of seasonal growth pick-up in July-September implies the FY18 dollar revenue growth will be muted for most. A relatively softer FY18 organic revenue growth forecast from Accenture of two to 5.5 per cent, against six per cent .

Slow IT growth, high talent supply may keep salaries low

At times of slow growth, India has seen number of graduates doubling since 2008 to almost 25 million in 2016