INSUBCONTINENT EXCLUSIVE:
By DK Aggarwal After some years of patchy drive, the Indian information technology (IT) industry, which contributes around 7.9 per cent to
the country's GDP, is on an upward trajectory
Globally, much of the growth is being fuelled by the robust infrastructure-as-a-service (IaaS) market, with hybrid and multi-cloud rising as
the architecture of choice
The rapid evolution of machines, algorithms in workplaces and increased adoption of next-generation technologies by organisations, have also
accelerated demand for IT services at home
Besides, government trust on higher spending on initiatives like Digital India and Smart Cities will continue to drive growth
All the digital projects, which were under way over the past couple of years, are now going mainstream
Performance of the many IT companies in the past few quarters clearly reflects an uphill performance.
Indian IT companies have continued
their investments in big bet areas such as digital, cyber security, engineering services and cloud
Now, software applications have got replaced or shifted to cloud
Also, hiring in the top Indian IT companies has touched an eight-year high, which indicates industry confidence in future demand scenario
Undoubtedly, new digital technologies such as social media, mobility, analytics and cloud computing (SMAC) have brought immense changes in
the way Indian IT companies do business.
On the flip side, emerging protectionist policies in the developed world to combat trade war
effects may affect Indian IT to some extent
However, Indian IT companies have adopted the global delivery model and are investing on setting up development centres in Latin America,
Southeast Asia and Eastern European countries to take advantage of low cost and cater to local markets
In the US, if the visa situation worsens, these centres will help avoid the risks of the new immigration bill and help lower pressure on
margins.
Going forward, a planned focus on domestic business opportunities and well-crafted solutions to meet the challenges of new age
economic trends in retail, financials, healthcare and media would continue to benefit India IT companies immensely
Technologies, such as telemedicine, remote monitoring solutions and clinical information systems will also continue to boost demand for IT
services across the globe
expectation that the industry size will grow to $24,50,000 crore by 2025
This is a good opportunity for investors to look at IT stocks as these bright prospects (expected) can help them to earn solid returns
Investors have a good opportunity to make money in stocks like TCS, Wipro, HCL tech and Tech Mahindra by investing in a staggered
manner.
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