BENGALURU: Nearly 80 per cent of the tech leaders in India expect the recovery of their businesses in the medium term. However, full recovery is expected to be a long drawn affair since the real nature of the impact remains uncertain, a survey of tech CEOs conducted by IT industry body Nasscom shows.
According to the Nasscom CEO Pulse Survey, which surveyed India’s IT industry leaders on the impact of the pandemic, Covid-19 has reshaped the tech needs of enterprises globally, and increased demand in the cloud, collaborative workplace technologies, mobility, and cybersecurity verticals is expected.
On an overall basis, however, demand for new projects may witness a temporary reduction over the next 8-9 months, even as the overall sentiment remains positive in the long term. Nearly 70 per cent of IT industry CEOs in India expect their revenues to be negatively impacted in FY21 due to the slowdown in global demand, while 75 per cent say that there will be a business de-growth in FY21.
Indian tech companies are likely to clinch more deals in the digital services vertical with 80 per cent of the respondents saying that tech offshoring is going to be a permanent feature. The industry has also helped clients navigate their operations due to a shift in demand during the pandemic. 40 per cent of the CEOs say that new digital tech deals are being explored amidst the crisis with a greater focus on workplace automation, quick-scale cloud workloads and AI driving digitalisation.
A smooth transition to Work From Home (WFH) operations has also been one of the mainstays of many businesses, with 80 per cent of CEOs now believing that WFH will be a more integral and formal part of Business As Usual (BAU) upon recovery. Various cost optimisation measures like reducing discretionary spends, travel costs, restructuring contract payments were also considered necessacities.
80 per cent of Indian tech CEOs are uncertain on full recovery after the pandemic wanes
70 per cent of tech CEOs expect revenues to be negatively impacted in FY21
75 per cent of surveyed IT firms expect a business degrowth in the current fiscal year