Domestic biz gives hope to IT firms hit by low spends in US

AS INDIAN IT services firms are increasingly coming under stress in the American market, there was some consolation from an unexpected quarter - a secular spurt in businesses from India and the Rest of the World (RoW) region.

- SAMEER RANJAN BAKSHI

From TCS to LTTS, including mid-tier IT firms like Happiest Minds, saw their revenue bump up in India.

For TCS, India geography reported a robust growth of 23.4% year on year (y-o-y) in cc terms. The growth driver was the BSNL deal that was recently bagged by the IT bellwether. This is in sharp contrast to North America, that grew negatively at -3% for TCS.

Similarly, other regions like the Middle East, Africa, Latin America and the UK grew at a much slower rate of 16%, 13.2% and 8.1% respectively. The revenue share of India for TCS was about 4.9% in the September quarter, which grew to 6.1% in the December quarter.

A recent Gartner report said that in 2024, spending on IT services in India is projected to grow 13.4%, up from 10.1% in 2023.