Double-Whammy: It Firms Staring At Lower Discretionary Spend, Pricing Pang

BFSI and healthcare verticals, however, may offer succour, says Crisil Ratings

As the Covid-19 pandemic rattles countries, the $97-billion IT industry is expected to witness revenue pressure in the financial year 2020-21. The pandemic could push the growth rate of the IT industry to a decadal low of 0-2 per cent, surpassing the earlier low of 4 per cent registered in the financial year 2017-18, according to Crisil Ratings.

“Typically, new deals get finalised between March and May, but this time around, most clients will focus on mitigating emerging business risks and defer discretionary IT spend, while letting existing contracts continue. The current restrictions on mobility of people will also delay consummation of new deals,” Anuj Sethi, Senior Director of Crisil Ratings, has said.