The revenues of top-tier IT companies, excluding Wipro, are expected to grow at a strong 20% in dollar terms in the first quarter of the current fiscal, compared to the same period in the previous year. Sequentially, the growth is expected to be in the range of 4-6%. The quarter has just ended, and Infosys Technologies will be the first of the big IT companies to announce its results, on July 12.
Analysts said, "The demand environment for IT companies looks strong and TCS and HCL are expected to lead the pack in revenue growth, followed by Infosys. Wipro, with the management re-structuring exercise and relatively low presence in fast-growing sectors like banking, financial services and insurance (BFSI) and practices like package implementation, continues to lag its peers."
Analysts expect a 1.1% sequential growth for Wipro. Despite recent concerns about the global economy, the demand for IT services in the BFSI, retail and manufacturing sectors remains robust. Many IT companies have plans to increase hiring, suggesting that demand for the rest of the year would be strong.
IT companies claim that recent developments have not affected client budgets or pricing, at least not yet. Some say they are turning difficult times into an opportunity, with clients increasingly believing that investing in IT is strategic for saving costs, faster time to market, and modernizing the business.
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