TCS and Infosys to Benefit Most from IT Spending; How Will It Impact Employees? - Report

Two top Indian IT service providers Tata Consultancy Services (TCS) and Infosys are soon to benefit the most from the accelerated IT spending by their clients across sectors. 

According to a report by Kotak Institutional Equities, amid the COVID-19 pandemic "these companies have accelerated their spending in innovative capabilities to reduce operating costs, reimagine customer experience and move to newer business."

Meanwhile, a global research and advisory firm providing information, Gartner reported tha outsourced IT services spend will increase to 6-8 percent between 2021-24, from 4-5 percent in the last 10 years. This can only happen due to acceleration in digital transformation spending.

"TCS and Infosys will be the first to confirm these changes given their comprehensive offerings, ability to win large integrated deals, and process capability," the report added. 

Other than these two IT companies, HCL Technologies and Wipro have also a robust digital infrastructure layer that they will support and come up with.

The report also states that these IT companies have also partnered with cloud hyperscalers like Google Cloud, Azure and Amazon Web Services and software-as-a-service providers to help clients through their digital transformation journey. 

As these clients are migrating to the cloud at a much faster pace, IT companies are unlikely to get the full benefit. So, with this pace- cloud service providers may see a 20-33 percent growth.

“The surge post-COVID-19 can create new opportunities though not of the scale witnessed with cloud hyperscalers,” the report added.