|
|
|
Indian IT sector set to face hardship
|
|
|
|
Top Stories |
 |
|
|
|
SME Times News Bureau | 01 Apr, 2020
The Indian IT industry is
set to experience a slowdown in terms of discretionary IT spending,
contract renewals and new deals getting signed as enterprises
recalibrate by cost structure in coming months, an IDC report said on
Wednesday.
According to Sharath Srinivasamurthy, Research
Director, Enterprise Solutions and ICT Practices, IDC India, the actual
impact of COVID-19 on India market will be evident by middle of 2020.
"Existing
project executions have also taken a hit due to travel restrictions in
place. IT vendors will be forced to relook at their growth targets for
the rest of the year as the impact will become evident in the next few
quarters," Srinivasamurthy said in a statement.
On the other
hand, the global health crisis has provided an opportunity to IT vendors
to test their resilience on business continuity, remote connectivity,
and security as they look at innovative ways to service their clients.
"Enterprises are looking at IT vendors to handhold them in the hour of crisis," Srinivasamurthy said.
Overall,
the growth in global IT spending is expected to reduce by 3-4 per cent
by the end of this year, considering ‘pessimistic scenario' due to the
outbreak of Coronavirus disease (COVID-19) pandemic.
The impact might be even more profound as spread seems to engulf many countries beyond China.
However,
adoption of collaborative applications, security solutions, Big Data
and AI are set to see an increase in the coming days.
"It has
also given an opportunity for IT vendors to test some concepts of
‘Future of Work' and some of them might become mainstream as the dust
settles,' said the IDC report.
While work from home is not a new
concept for Indian corporates, it certainly is a testing time to see
the success at this scale.
Enterprises are also exploring ways
of working together that leverages conversations, meetings, and assets
across platforms with employees working remotely from wherever they are
located to serve customers better and ensure business continuity, the
report noted.
IT vendors are working with clients to get special
approvals and SLA (service-level agreement) holidays, wherever needed,
to have employees connect remotely to continue providing services
especially in supporting mission-critical IT systems.
"IT
vendors should look at offering incentives on the existing contract
extensions and also build conversations on business continuity and
disaster recovery in the cloud," the report suggested.
IT vendors should also keep an eye on emerging uses cases in AI for disease detection, tracking, and prevention.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
Japanese
Yen |
55.05 |
53.40 |
As on 12 Oct, 2024 |
|
|
Daily Poll |
 |
 |
Do you think Indian businesses will be negatively affected by Trump's America First Policy? |
|
|
|
|
|
Commented Stories |
 |
|
|
|
|
|
|
|