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Despite incurring COVID induced losses, Indian IT Companies are hopeful of getting new deals in the coming months. However, GlobalData indicates that new IT contracts are declining worldwide- both b volume as well as value. According to the data on global IT trends the difference between spending for last year verses this year is high since it stood at $14.4 billion in June last year as compared to $4 billion this year. The silver lining is that Indian IT firms are not seeing the same trend since they are bagging better deals than what they were in 2019. The management of many Indian IT Majors too are confident about winning more deals in the coming months. 

Indian IT companies such as Tata Consultancy Services (TCS), Wipro, Infosys, HCL Technologies and Tech Mahindra have shifted their focus towards digital transformation since they believe that the current increase in demand is driven by digital transformation. Businesses are increasingly exploring options such as cloud adoption, automation, cybersecurity and consolidation and working towards bringing them to the forefront. 

TCS saw a 22.5% decline in value of new deal wins at the end of June as compared to three months ago but at the same time last year, the deal value has increased. “Overall, from a first- quarter order book perspective, contrary to fears of economic uncertainty and travel restrictions, etc., deal closures have continued at pace,” said TCS CEO Rajesh Gopinathan during Earnings call. 

IT Major Infosys reported a decline in the value of its year-on-year deals. However, it bagged the biggest deal in the history of the company with Vanguard. “As the challenges persist, we see clients looking for opportunities to improve the efficiency of their tech spend and we continue to see robust pipeline of deals in this segment,” said Infosys COO Pravin Rao. 

HCL Technologies has not disclosed the value of its deals but has reportedly signed 11 new deals within the last quarter. “Looking ahead, I see very good growth in the pipeline. In the last quarter to this quarter, our pipeline increased by 40%,” HCL Tech CEO C Vijayakumar told the Business Insider.

There is a common consensus among Indian IT firms that the new deals are only likely to expand in the coming months. The major reasons behind this could be attributed to the shift to digitization and increasing focus towards the aforementioned areas. However, companies also noted that closure of deals is taking longer than the usual time taken due to the current circumstances.