IT services growth to return in 2021, Covid to fuel digital spends: Fitch

The Indian IT services sector is expected to return to high single-digit revenue growth in 2021-2022 galvanised by higher demand for digital transformation after a flattish 2020, according to Fitch Ratings.

In a new report titled ‘Spotlight: Indian IT Services Sector’, Fitch said the impact of the coronavirus pandemic is seen to be only moderate and short term, as customers focus on transforming their businesses digitally, moving services and work platforms online, and minimise spending on legacy services.

Pandemic will accelerate digital IT spends, it said. Most companies have reported robust deal wins that should support growth in 2021-2022, despite the revenue decline in the second quarter of 2020, said the report.