Digital business takes centre stage for India’s IT services companies

BENGALURU : Major Indian information technology (IT) services companies reported strong growth from digital business in the June quarter, despite the covid-19 impact and global challenges. This helped maintain buoyancy as clients transitioned to work-from-home and demand for cloud, collaboration and cybersecurity-related technologies shot up.

Typically, practices that cover emerging technologies like cloud, mobility, analytics, internet of things, and cybersecurity are clubbed under the digital business. Until recently, most IT services companies separately reported their digital revenues but the trend is changing as digital has increasingly become part of their mainstream offerings.

“Digital is definitely mainstream for IT service providers. Comparing digital revenues across providers can be difficult because different providers use different definitions for digital revenue,” said Dean Blackmore, senior director analyst, Gartner. “We estimate that in 2019, non-digital IT services revenue was still around 52% of total IT spending. However, by 2023 that will drop to around 31%,” Blackmore said.