BENGALURU: Digital transformation deals have seen a 30 per cent jump, cloud spending 80 per cent,
and customer experience 15 per cent since the onset of the Covid-19 pandemic, said a joint report released by Nasscom and McKinsey on Thursday.
Titled, ‘Future of Technology Services – Navigating the New Normal’, the report highlighted that tech firms and other enterprises which transformed their businesses into digital (with revenue of over $3 billion) constituted 65 per cent of $6 trillion growth in market capitalization seen between January- July 2020.
Extensive acceleration in digital adoption by enterprises and a potential increase in outsourcing intensity due to remote working are contributing to the faster than expected recovery for the technology services industry, it added. Despite the revenues being significantly hit in the April-June period, a majority of the IT services firms reported a quick recovery in the second quarter (July-September) on back of cloud and digital offerings for existing clients and new deal-clinches.
The recovery, however, has not been a uniform one with some sectors like retail, hospitality and travel still hit by the pandemic whereas others like hi-tech, edtech, life sciences have increased their IT spending significantly.
The survey which quizzed chief information officers (CIOs) said that 70 per cent of enterprises are looking to either increase or reprioritise their outsourcing spend, with business digitization (including remote enablement) and cloud transformation.