ICRA forecasts 3-5% growth for Indian IT industry in FY25
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Indian IT services industry to grow 3-5% in FY25: ICRA
The revenue growth of the Indian IT services industry is forecast to improve mildly from 2% recorded in the first nine months of FY24 to a modest 3-5% in FY25, according to ICRA. Despite expectations of tepid revenue growth, ICRA maintains its stable outlook for the Indian IT services industry, led by a well-established business position, expectations of healthy earnings and cash flow generation, and strong balance sheets of the industry players.
In 9M FY24, in US dollar terms, ICRA’s sample set companies recorded a modest year-over-year (YoY) growth of ~2.0% in revenues, against 9.2% in FY23. In terms of geography-wise trends, the growth in the US witnessed a sharp moderation compared with that in Europe. Though revenue conversion of orders slowed down, the order book and deal pipeline of most companies remained strong.
Moreover, evolving consumer demand dynamics, post the pandemic, have made technology spend far more integral to the overall capital allocation of corporates. Therefore, ICRA expects a likely pick-up in the growth momentum once the macroeconomic headwinds subside.
In line with subdued demand prospects, hiring activity in the industry has remained muted over the past five quarters, with negative net addition for the sample set companies because of moderation in demand, coupled with the increase in utilisation of excess capacity added in FY2023.
TCS gets top ranking in customer satisfaction
Tata Consultancy Services (TCS) has been ranked the number one IT service provider for customer satisfaction across Europe in Whitelane Research’s independent survey of the top IT spending organisations.
TCS received the highest ranking in this survey for the 11th consecutive time. TCS also ranks number one in customer satisfaction in financial services, manufacturing and chemicals, consumer goods, and pharmaceuticals, according to Whitelane Research.
Overall, the Whitelane Research 2023/2024 IT Sourcing Study surveyed over 2,000 participants from the continent’s top IT spending organisations who evaluated over 5,000 unique IT sourcing relationships. In the assessment of IT providers, the report found TCS’ customer satisfaction score to be 82%, 7% higher than the industry average.
TransUnion expands role of India GCC head
US-headquartered consumer credit data company TransUnion has announced that Debasis Panda, Senior Vice President, Global Operations will be responsible for leading the company’s Global Capability Centers (GCCs) in Costa Rica and South Africa.
This adds to his existing portfolio of overseeing the four GCCs in India (Bengaluru, Chennai, Hyderabad, and Pune).
In his expanded role, Debasis will be responsible for the distributed network of GCCs in six centres across three continents, overseeing more than 4,000 employees. He will be supported by the in-country and site-specific leaders who will continue to lead their respective centres.
Debasis has more than 30 years of experience in IT services in global leadership roles, setting up GCCs and development centres, and managing global delivery with P&L responsibilities. He holds a Bachelor’s degree in engineering from the National Institute of Technology (NIT), Rourkela, and a Post Graduate Diploma in Management from the Xavier Institute of Management, Bhubaneswar.
DevRev introduces OneCRM platform for Mumbai region
Technology company DevRev has announced the availability of its platform OneCRM apps in the Mumbai region. According to the company, OneCRM has been purpose-built for digital companies building software, managing products, and supporting customers. The AI-native apps will enable users with self-service features to provide complete CRM services.
DevRev has also announced the general availability of PLuG Enterprise, a chatbot capability that enables GenAI-powered user observability providing economies of scale. PLuG has the ability to crawl and index social media and app store activity, cluster and classify them into tickets, and store vast amounts of session observability data for subsequent processing with LLMs and in-browser databases.
Edited by Kanishk Singh
