Indian IT looks at a bigger digital play: HDFC Securities

Indian IT firms have hit refresh and are looking at larger opportunities in digital business from customers, the industry’s investments in reskilling staff and in platforms that will help them get better pricing power from clients, HDFC Securities said in a report.

The key positives for the sector include the pivot to digital which has grown 32% year-on-year in the December quarter, along with a strong deal pipeline and big deal wins. Initial success in transitioning to a new business model is evident in growth leadership vs global peers who led the cycle to the digital shift. While the revival in the core BFSI vertical is encouraging, there are early signs of a slowdown in the US, which is a core geography, along with the repercussions of Brexit, which are cause for concern.