icra it services industry growth to accelerate in financial year 2022
According to the latest report of the Information and Credit Rating Agency (ICRA), the increase in the demand for digital technology is bound to increase the revenue of companies. Under the buyback policy, IT companies will also get the benefit of the stalled demand of the year 2020.
New Delhi. Despite the second wave of Corona epidemic, the current financial year 2021.22 will prove to be better in terms of earnings for IT companies. According to the Information and Credit Rating Agency (ICRA), due to the increasing demand for digital technology in the Corona era and getting more contracts than before, the revenue of IT companies is set to increase. Not only this, the loss caused to IT companies in 2020 due to the first wave of Corona is likely to be compensated in the current financial year under the buyback policy.
Read More: Indian Export: Economy picks up pace, record exports of $35.2 billion in July
According to the latest update released by ICRA regarding business, due to the increase in work from home, the business of IT companies has increased significantly. IT companies are also engaged in achieving new targets.
15% increase in annual contract value
According to ICRA Vice President Gaurav Jain, IT companies are shifting their business models to digital platforms in a big way. Its purpose is to promote work from home. This is encouraging core modernization, use of multiple technologies and cloud migration in companies. This is the reason why traditional sourcing has shown an annual contract value of $15.2 billion in January-June 2021. This is 15 percent more than last year.
H-1B risks reduced
Due to Corona, digital outsourcing has also got a boost due to the shift of the entire business to the virtual model. At the same time, the risks associated with H-1B have also reduced since the arrival of US President Biden. The proposed changes to the visa rules are now on hold. It is clear that further processes will be easier.
Read More: Post Office PPF Scheme: By depositing Rs 70 everyday, you will get lakhs of funds on maturity
#icra #services #industry #growth #accelerate #financial #year