Material growth from cloud will take time to reflect for IT firms, say analysts

Cloud-based businesses of IT services providers may take longer to show growth and profitability than initially anticipated, analysts have said.

While the evolution of cloud as a technology is not in dispute, they said the acceleration led by the Covid-19 outbreak on cloud services providers and IT firms is uncertain for now.

In fact, cloud-related revenues for companies like Infosys and TCS are only expected to grow gradually by financial year 2022 rather than in the second half of the ongoing fiscal year, they said.