ICRA Forecasts 3-5% Growth for Indian IT Industry in FY25

The Indian IT services industry is expected to experience a mild improvement in revenue growth, projected to rise from 2% in the first nine months of FY24 to a modest 3-5% in FY25, according to ICRA.

Stable Outlook Amidst Challenges

Despite expectations of tepid revenue growth, ICRA maintains a stable outlook for the Indian IT services industry. This stability is attributed to factors such as a well-established business position, expectations of healthy earnings and cash flow generation, and strong balance sheets of industry players.

Revenue Performance in FY24

In 9M FY24, ICRA’s sample set companies recorded a modest year-over-year (YoY) growth of ~2.0% in revenues, measured in US dollar terms. This is a notable decrease from the 9.2% growth seen in FY23.

Geographical Trends

The growth in the US witnessed a sharp moderation compared with that in Europe during the same period. However, despite a slowdown in revenue conversion of orders, the order book and deal pipeline of most companies remained robust.

Future Growth Prospects

The post-pandemic evolution of consumer demand dynamics has made technology spend more integral to corporate capital allocation. As macroeconomic headwinds subside, ICRA anticipates a likely pick-up in growth momentum for the industry.

Hiring Activity and Utilization

Hiring activity in the industry has remained subdued over the past five quarters due to moderation in demand. Negative net addition for the sample set companies was observed, coupled with an increase in utilization of excess capacity added in FY2023.

TCS Tops Customer Satisfaction Rankings

Tata Consultancy Services (TCS) has secured the top position in customer satisfaction across Europe, according to Whitelane Research’s independent survey of the top IT spending organizations.

Industry Recognition

This marks the 11th consecutive time TCS has received the highest ranking in the survey. Additionally, TCS leads in customer satisfaction across various sectors including financial services, manufacturing and chemicals, consumer goods, and pharmaceuticals.

Survey Scope

The Whitelane Research 2023/2024 IT Sourcing Study surveyed over 2,000 participants from top IT spending organizations in Europe, evaluating over 5,000 unique IT sourcing relationships.

Exceptional Performance

TCS achieved a customer satisfaction score of 82%, which is 7% higher than the industry average, reaffirming its commitment to delivering exceptional service to its clients.

TransUnion Expands Leadership Responsibilities

TransUnion, a US-headquartered consumer credit data company, has expanded the role of Debasis Panda, Senior Vice President, Global Operations.

Expanded Portfolio

Debasis Panda will now be responsible for leading the company’s Global Capability Centers (GCCs) in Costa Rica and South Africa, in addition to overseeing the four GCCs in India.

Leadership Experience

With over 30 years of experience in IT services in global leadership roles, Debasis Panda brings a wealth of expertise to his expanded role.

 He holds a Bachelor’s degree in engineering from the National Institute of Technology (NIT), Rourkela, and a Post Graduate Diploma in Management from the Xavier Institute of Management, Bhubaneswar.