Indian IT – Return of the IT czars

Indian IT industry had been the biggest victim of the global financial crises, with large clients across the globe cutting their IT budgets as part of their cost cutting measures. However, all major Indian IT companies displayed resilience by overcoming the pricing pressure from large banks in US/Europe outsourcers, and largely maintained their profit margins. Large Tier-I companies (Infosys, TCS, Wipro) expanded into newer markets, acquired companies and bundled their services to maintain their strong revenue growth. Going ahead, these companies are likely to see strong business growth supported by improved economic scenario in the developed markets as indicated by the strong financial performance in the recent Q3FY2010 results. Further, companies have started hiring more employees signaling stronger order book in the ensuing quarters, resurrection of business confidence and of better times ahead.

By Hitesh Agrawal,Head - Research, Angel Broking