IT companies projected to see 30% growth in digital revenues: Report
2 min read . Updated: 24 Feb 2023, 04:56 PM IST
Premium- The Indian tech sector has been gaining prominence in terms of its contribution to the overall economy, employment, innovation, and resilience, as per the report.
Emkay Wealth Management Global Financial Services has released a note on the Indian technology funds, the investment opportunity, scale, and the fundamentals of the tech companies. The research house expects the Indian IT companies to do well on the basis of their experience over the past two decades in handling disruption, changing geographical presence, currency gains, attractive valuation, economic recovery in the west, and relatively unchanged tech spending. Emkay Wealth Management expects digital revenues for IT companies to grow in the range of 25 per cent to 30 per cent.
The Indian tech sector has been gaining prominence in terms of its contribution to the overall economy, employment, innovation, and resilience, as per the report. The report suggests that the relative share of the sector in India's GDP is 7.40 per cent and the share in service exports is 51 per cent and the sector employs more than five million people, and the trend of employment is gradually accelerating, and the sheer size of the employment is going to be of astounding proportions.
As per the report, India is already the third-largest start-up hub for tech start-ups with close to 2500 new startups and 45 unicorns. Digital revenues are likely to grow at 30 per cent. All major segments of the industry are growing at a double-digit rate, IT services are growing at around 17 per cent. Whether it is infrastructure management, cloud-based testing services, cloud migration, consulting, etc. all are growing at a decent pace, adds the report.
Reportedly, the other growth areas are networking services, AI and analytics, platform-based services, etc. ability to respond to customer needs, focus on creating future-ready solutions, and accent on customer centricity are some of the interesting features of the business approach.
The IT sector has been facing the perfect storm at the global as well as domestic levels over the past few months, as per the report. Moreover, the sharp run-up in inflation globally, and the resultant aggressive monetary policy actions by central banks in the developed economies (the major market for IT companies) to contain inflation resulted in recessionary expectations gradually gaining ground, added the company.