NEW DELHI: Amid dark clouds of tough business weather over Indian onformation technology companies, the fourth quarter results of Infosys offered a ray of hope. It actually surprised the market by posting a 16.2 per cent jump in net profit as against the expected 11.4-14.7 per cent.
The IT sector is facing several challenges, including global economic slowdown and discrimination in H-1B and L-1 visa fees. “…There are challenges — the economic slowdown in several geographies, sector level slowdowns like in energy and the disruption inside the sector itself, which is making it harder to make revenues,” said R Chandrasekhar president of Nasscom, the apex body of IT and ITES companies.
Unless these firm begin to look inwards, as the domestic market for their products continues to grow, the going will be tough for them. Analysts, however, said the banking finance and services and insurance (BFSI) segment continues to hold promise.
In addition, the automobile sector, which is currently down globally will look up and offer a new opportunity. “But the big opportunity is in data analytics and this will boost revenues for Indian IT firms,” said N K Goyal, founder of CMAI, IT and telecom analyst firm.
The ever-growing software professionals in India, who can work under extreme socio-cultural conditions, provide the strength to these firms.
Infosys and others are betting on this for growth and expansion.