• Data centre capacity of India, which has the world’s second-largest data subscriber population, is expected to grow to 1,078 MW by 2025 from 375 MW in the first half of this year.
• Clients focus on cost rationalisation and look for partners that can provide them with a consultative approach along with the management of their entire IT infrastructure.

Dubai: Indian IT vendors continue to shine more than their global counterparts, despite Covid-19, due to cloud and digital transformation offerings.

Infosys increased their digital revenue contribution to the overall revenue from 41.9 per cent in March 2020 to 47.3 per cent in September this year while Wipro’s digital operations and platforms service line accounted for 15.5 per cent of the revenue as compared to 14.8 per cent in the previous quarter.

Tech Mahindra reported net new deals worth $421 million for the quarter ended September 2020, besides partnering with Amazon Web Services (AWS) for blockchain technology and VitalTech for offering digital technologies to healthcare providers.

TCS too has won key deals for digital transformation from women’s fashion-apparel retail chain ‘maurices’ and customer experience transformation from Travelport during the quarter.

HCL’s Mode 1-2-3 Strategy has enabled it to win digital transformation deals globally. Additionally, it has launched key products like Automation Power Suite, NetBot, updated versions of its DRYiCE offerings to further strengthen its digital portfolio.

For L&T Infotech, digital revenue accounted for approximately 42.9 per cent of the revenue for the quarter ended September 20 as against 42 per cent in June 2020.

Even though the revenue for the June 2020 quarter declined for most of the Indian IT vendors, Sunil Kumar Verma, Lead ICT Analyst at GlobalData, said that there was some silver lining for them for September 2020, thanks to their digital focus.

“Demand for digital is expected to grow as companies focus on having intelligent, automated, migration acceleration platforms and services,” he said.

Potential agile business environment

Leading technology vendors continue to offer added offerings in the digital space to improve their top-line revenue and maintain a healthy profit margin.

Companies are focusing on strategic product offerings to operate in the current as well as the potential agile business environment to meet customer expectations via the digital channel.

Moreover, big tech giants are expanding their footprint in India as digital transformation is gaining traction.

Recently, Amazon has announced its plans to invest $2.8 billion in a new AWS Cloud region in Telangana, Hyderabad, in the southern state of India. The new AWS Asia Region will be Amazon’s second infrastructure region in India.

IBM has announced that it is creating an AI Centre of excellence, in partnership with the Indian government’s e-marketplace (GeM), to increase usability, transparency, drive efficiency and cost savings in public procurement.

Covid fuels cloud adoption

According to a recent report by consultancy firm JLL, the data centre capacity of India, which has the world’s second-largest data subscriber population, is expected to grow to 1,078 MW by 2025 from 375 MW in the first half of this year, registering an annual growth rate of 21 per cent, A total of 9.3 million square feet of real estate will be added to the existing capacity with Mumbai leading the numbers followed by Chennai and Hyderabad.

The Covid-19 pandemic reinforced the dependence of several industries on digital infrastructure and significantly increased cloud adoption.

Verma said that majority of the Indian IT vendors had already concentrated their efforts towards the digital world through their cloud, digitisation and automation offerings.

Though the adoption of digital offerings and enterprises’ efforts of embracing the digital world existed previously as well, he said the Covid-19 outbreak has further accelerated it.

However, he said that workload migration to the cloud, automation of the existing processes, infrastructure modernisation, cybersecurity, AI-based applications deployments, adoption of digital platforms are some of the key areas, which are enabling Indian technology vendors to sustain in the current scenario.

Indian IT vendors are more likely to be in demand in the coming years, as the clients focus on cost rationalisation and look for partners that can provide them with a consultative approach along with management of their entire IT infrastructure, thereby offering a value-based service delivery model, he added.

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