Covid-19 pandemic to hit Indian IT-BPO industry hard

As it continues to rattle countries and economies, the coronavirus is expected to hit the Indian IT and BPO industry quite hard. Investor information and credit rating agency ICRA has estimated that the growth rate of IT services sector this year would dwindle to 3-5 per cent as against the earlier estimate of 6-8 per cent.

Projected fall in the growth rates of the US and the European Union would have a direct bearing on the Indian IT industry, as those markets contribute over 80 per cent of their export revenues.

All the key verticals of BFSI, oil and gas, manufacturing and retail are going to suffer as the capacity of clients come down.

Besides, the coronavirus impact would also weaken discretionary spending.