Demand for digital technologies and resumption of normal economic activities will drive sales for IT companies, and the sector will post revenue growth of up to 9 percent in 2021- 22, a report said on Thursday.
Rating agency ICRA gave a "stable" outlook for the sector, whose size is pegged at over USD 180 billion by industry lobby Nasscom, including the business process outsourcing business. The IT services sector's revenues will rise between 7-9 percent in rupee terms and between 5-8 percent in dollar terms in 2021-22, it estimated. It can be noted the pandemic has dented activities across sectors and the IT business is one of the few isles of growth. All the top IT companies have reported a handsome performance for the Q3uarter of 2020-21 and make optimistic guidance.
Nasscom stopped an over two-decade-old practice of giving an aspirational growth target for the industry two years ago. "Growth in INR expected to be 7-9 percent while in US dollar terms it will be 5-8 percent growth for FY2022, demand for digital technologies and resumption of normal economic activity will drive growth," ICRA said.
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