IT companies are bracing for slower growth in their India business, as companies hold back on technology spends to adjust to a slowing economy. While the country does not constitute a large proportion of IT companies’ revenue, it is nevertheless a key growth market, with firms such as Cognizant and Tata Consultancy Services looking to expand its business locally.
The slowdown in spending is restricted to some segments that are facing economic pain, while others still continue to invest, analysts said.
“In manufacturing, there is a clear issue; auto, is down. But if you look at verticals like BFSI, healthcare, hospitality, there is a lot happening in those sectors. A lot of IT spend is now moving to non-CIO roles and that is not a territory where the traditional IT services companies are present,” said Sanchit Vir Gogia, chief executive at Greyhound Research.
Startups, particularly in the financial technology and food technology segments, are spending quite a bit on technology, he pointed out.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
Have a question on this or other Technology & Innovation topics? Click here to set up an enquiry call with Sanchit Vir Gogia.
Copyright © 2019 Greyhound Research. All rights reserved. You may share this research note using the options made available. Please don’t copy this research note (complete or parts) and distribute over the web and emails. Connect with us if you need clarifications.