Indian IT Sector on the Road to Recovery
Indian IT sector is finally witnessing some revival, with clients in the financial services sector opening up to deals. Large IT companies, including TCS, Infosys and Wipro are trying to grab contracts with firms such as Bank of America, Merrill Lynch, RBS, ABN-AMRO, Goldman Sachs, Lloyds, TSB, UBS and Lehman.
The financial services sector witnessed a number of mergers and acquisitions last year as a result of the meltdown and these firms are now looking at IT integration work.
Infosys CFO says that these banks are already our clients and we have got some incremental work from them, though the clients are still conserving on future spending.
Wipro CFO says that we are seeing the European banks opening up. However, the US clients are still conservative. We are witnessing some incremental, as well as large deals coming from the sector.”
TCS CEO says that the firm had bagged some deals related to Bank of America and Merrill Lynch as part of their master agreement with both banks.
Before the downturn, in 2007-2008, the IT industry was heavily dependent on the financial service sector, as it contributed almost 40% to their revenues. With the financial meltdown, most banks went bankrupt and contribution from the sector to the overall revenues came down by almost 7-10%. The revival is expected to show up in the coming quarters.
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