Indian IT midcap companies seem well-placed on their path to growth with healthy deals in the pipeline and addition of a new clients to their current portfolios. Companies look to make heavy investments in the overseas markets, analysts foresee further expansion in the near future. Even the global worries looming the world economy, growth plans for Indian midcap software firms seem well on track.
The midcap IT firms have witnessed sustained growth with significant investment especially in the European. For the Indian IT sector, this also falls in line with Nasscom’s growth projections of 16-18%. The IT firms maintain that in spite of a marginal slowdown, overseas client budgets remain unaffected.
The Chief Corporate Development Office at Zensar Technologies, Ajay Bhandari says that the company’s retail and inusurance verticals are fetching maximum returns. They have not seen any cuts in clients budgets so far. Base on the research firm Ernst and Young India, small companies are looking at virgin markets for outsourcing, which have helped drive growth.
The midcap companies have made acquisitions in countries like Spain, Turkey and German, regions which are not on the radar of large IT outsourcing firms. For midcap IT firms and that has kept the business pipeline healthy, the $30 billion outsourcing market in Europe accounts for 25 percent of revenue. The analysts say that focusing on regions beyond the UK has worked in the favor of the companies.
The Partner IT Practice, Ernst & Young Milan Sheth said that within the Europe they have started focusing on regions and countries beyond the UK. All the efforts that they had taken 24 to 30 months back are bearing fruit. For majority of the IT companies, analysts consider looking at various options as a key to their growth although UK remains to be a preferred destination.
REFERENCES:
http://profit.ndtv.com/news/corporates/article-growth-of-indian-it-firms-intact-despite-global-crisis-293853
http://articles.timesofindia.indiatimes.com/2012-05-30/software-services/31899878_1_growth-story-gdp-global-leaders
http://ibnlive.in.com/news/indian-growth-story-is-intact-pranab-mukherjee/258433-7.html
