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IT upbeat; high hopes from HCL

india Updated: Jan 24, 2010 20:33 IST
Vivek Sinha
Vivek Sinha
Hindustan Times
Highlight Story

The mood in the IT industry has turned optimistic after giants TCS, Infosys and Wipro performed beyond expectations in the October-December quarter. Analysts also expect strong numbers from HCL Technologies, which announces its results today.

The positive mood follows from sound revenue growth in the key BFSI (banking, financial services & insurance) segment. Not surprisingly, IT companies are hiring and increments are round the corner.

IT research and advisory firm Gartner has predicted 4.6 per cent growth in worldwide IT spending this year. "Although modest, this projected growth represents a significant improvement from 2009, when worldwide IT spending declined 4.6 per cent. All major segments (computing hardware, software, IT services, telecom and telecom services) are expected to grow in 2010," the report said.

"The BFSI segment is showing robust revival due to massive bailouts provided by various governments world over," said Achen Jakhar, CEO of Svelte Systems, an IT consultancy firm for multinational companies.

Jakhar said revenues had risen for IT companies even though the number of projects bagged by them may have gone down.

Is the growth here to stay? "Yes," said Manish Bahl, manager — emerging markets, Springboard Research, an IT consultancy firm, “the security solutions for online payments will be more in demand in the BFSI segment. Also, there will be pressure to increase productivity and reduce costs."

However, Richard Gordon, research vice-president at Gartner, offers a caveat. "It is important to factor in the impact that exchange rates will have on the markets. Much of the increase in our revised 2010 forecast can be attributed to a projected decline in the value of the US dollar compared to 2009," said Gordon.