Worst over for IT business as firms eye more deals, buys

BENGALURU: Despite a substantial decline in profits the leading IT service providers witnessed in the quarter gone by ( April- June FY 21), the sector is headed for a strong comeback even as the overseas markets still remain challenged by the Covid pandemic. Industry experts expect tier 1 and mid-tier IT service companies to post a marginal growth in the range of 3-5% quarter-on-quarter (QoQ), although the revenues as well as profits will nowhere be close to what was seen last year. The wave of lay-offs triggered by the pandemic in the industry is also likely to stabilise in the next few months, as financials improve.