COVID-19 to accelerate change the way Indian IT services firms work, says GlobalData
Following the news that hiring by the top-five Indian IT services companies dropped by 28% in FY20;
Swati Verma Lead Analyst – Thematic Research at GlobalData, a leading data and analytics company, offers her view:
“Hiring by Indian IT services firms will continue to decline as COVID-19 forces them to change the way they operate. The pandemic has accelerated changes that were already underway in this sector, including increased automation and greater use of collaboration platforms.
“GlobalData’s Thematic Research Scorecard for the IT services sector shows that COVID-19 will result in an awful 2020 for all companies. The scorecard ranks companies within a sector based on overall leadership in the 10 themes that matter the most to their industry, generating a leading indicator of future performance.
“Automation of internal processes has been a key focus over the last few years, as India’s biggest IT services firms, TCS, Infosys, HCL, Wipro and Tech Mahindra, aimed to cut costs and improve efficiency. This trend will accelerate as vendors adapt to changing market conditions and shift to permanent remote working models.
“The impact of COVID-19 on the IT services sector will be deep, immediate and long-lasting. Consequently, hiring will also be reduced as major IT projects are canceled or put on hold.”