Disruption in related sectors to mute IT growth in FY21

Business disruptions, and the collapse of sectors such as travel and tourism owing to the COVID-19 pandemic are set to impact the growth of the IT sector this year, according to analysts. They believe that the ongoing lockdown and pause on economic activity is bound to impact the sector negatively. Hiring in the IT/ITeS sector is bound to see a major impact by the ongoing COVID-19 pandemic that has resulted in a countrywide shutdown till April 14.

According to brokerage firm Sharekhan, enterprises that function as clients of IT companies have been issuing travel advisories and implementing work-from-home (WFH) measures. The report says that despite strong business continuity planning and robust service and delivery model, the lack of infrastructure and logistics and client’s confidentiality clauses will impact the delivery of projects.