Digitization to drive 9-12% dollar revenue growth for IT firms: Icra

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Domestic IT services companies are expected to log a dollar revenue growth of 9-12% in FY22, driven by accelerated demand for digital technologies from enterprises globally and partly on account of low base of last year due to the covid-19 impact, ratings agency Icra said on Tuesday.

Industry growth is expected to moderate marginally to 6-9% in FY23, partly also on account of the base effect, Icra said in a statement.

“In line with the growth trajectory witnessed over recent quarters, Indian IT services companies are expected to report healthy growth over the near term due to aforementioned favourable factors,” Icra assistant vice-president and sector head Deepak Jotwani said.

He added that this growth has been supported by uptick in all key verticals such as BFSI, telecom, manufacturing, retail and distribution.

However, concerns have emanated from elevated attrition levels for the industry due to strong demand for digital technologies and lack of adequate skilled manpower to service the same. Firms are reskilling employees to overcome this challenge. Moreover they have also been able to achieve higher employee productivity through increased deployment of technology.

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