The IT industry is likely to report a modest growth in revenues in the fourth quarter of 2020-21 and a double-digit growth in 2021-22. The tier-I IT companies are likely to close the quarter with a growth rate of 2.5-3.4 per cent in revenues in the quarter over the previous quarter.
A projected double-digit growth in the current financial year would also mean a sharp increase in hiring to meet the growing demand for IT services and solutions.
This is in tune with the Nasscom’s growth projections for FY20-21. With the pandemic slowing down economies across the world, the industry body had pegged the overall growth at 2.3 per cent in 2020-21. “Tier-II companies are expected to report higher growth rates in the range of 3.3-5.2 per cent. We can expect double-digit guidance for the sector in the current financial year,” analysts at the research firm Motilal Oswal have said.
Source: The Hindu BusinessLine
