The $100 billion information technology (IT) services sector is expected to stage a strong recovery this fiscal, with revenue growth of 10-11 per cent, a report said.
The improvement will ride on increasing outsourcing and accelerating digital transformation services, accentuated by the pandemic, mainly in sectors such as banking, financial services and insurance (BFSI), healthcare, retail and manufacturing.
In its report, Crisil Ratings said that higher business levels, and more profitable digital deals will also help IT services players maintain healthy operating margins.
This, along with already healthy balance sheets will, in turn, lend a positive bias to the credit profiles of IT service providers, it said.
“With customers focussing on optimising costs, outsourcing of IT services is seeing a steady rise globally.
The pandemic has opened up additional opportunities in digital services due to surge in remote working, e-commerce and automated services,” Crisil Ratings Senior Director Anuj Sethi said.