This is what Infosys results reveal about Indian IT

BENGALURU: As the impact of a shift to digital technologies gets more pronounced, Infosys’ core revenue, or revenue from bread-and butter IT services such as multi-year support contracts, fell 5% in the third quarter, with analysts saying the trend is likely to accelerate as more companies face shrinking revenue from what is still a major part of their business.
IT clients have been shifting spends from existing technologies — used to currently run their businesses — to newer ones in order to deal with disruption from startups and demands from customers.
Clients have also consolidated core IT spends with some larger players, helping Indian IT companies weather the contraction. However, that is now coming to an end, experts said. “The portfolio consolidation is coming to an end, leaving the compression to drive negative growth. We expect this to continue and to accelerate, hence we would expect the 5% compression to expand over time and may even hit as much as 15% in a few years,” said Peter Bendor-Samuel, CEO of IT advisory firm Everest Research.