For IT services companies, the current financial year (2021-22) is going to be very good in terms of earnings. According to rating agency ICRA, due to increasing demand for digital technology and getting more contracts, the revenue of companies will definitely increase. Apart from this, in the current financial year, companies will also benefit from the stalled demand of the previous financial year. That is, the deals that IT services companies could not get during the first wave of COVID can also be found in this financial year.
According to Gaurav Jain, Vice President and Sector Head, ICRA, due to the increase in work from home, the demand for IT services companies has increased significantly and they are engaged in fulfilling it non-stop.
Companies towards digital shifting, so business will increase
Jain said that companies are shifting their business model to digital platform on a large scale so that work from home can be promoted. This is encouraging core modernization, simultaneous use of multiple technologies and cloud migration in companies. This is necessary to promote work from home. IT services companies will benefit from this. Traditional sourcing showed an annual contract value of $15.2 billion in January-June 2021. This is 15 percent more than the corresponding period of last year. It is clear from this that the demand for digital technology has increased.
Bharti Airtel earned a profit of Rs 284 crore in the June quarter, the company’s ARPU also increased sharply
Simplifying the rules in the US market will meet and contract
According to Jain, businesses are now shifting to the virtual model. This has increased the deals of digital outsourcing. The risks associated with H-1B have also decreased after the arrival of President Biden in the US. The proposed changes to the visa rules are still pending, but the procedures will be easier in the future. Such situations will be more favorable for IT services companies. Therefore, it will be a profitable deal for IT services companies.