India Inc. to secure $160Bn tech deals in Q1 2023
INDIA — The IT industry in India could bag an estimated $160-billion worth of tech deals in the first quarter of 2023, according to several analysts. Most of these deals are expected to come from renewed contracts and current clients of the sector.
This comes as global corporations look to consolidate technology spending with fewer vendors and reap the benefit of better pricing amid worsening macroeconomic conditions.
Ray Wang, founder of Silicon Valley-based Constellation Research, said that the value of the new deals could amount to nearly a fifth of the global IT services business valued at $800 billion.
Analysts stated that the bulk of the deals would come from American corporations, with a few from Europe and the Asia-Pacific region, even as high inflation and recessionary trends in the US and Europe are pushing software buyers to consolidate spending, with financial services and consumer goods companies on top of the pile.
Meanwhile, HCL CFO Prateek Aggarwal said that several clients who were just “extending the old deals with existing service providers” are now in the market looking for new service providers.
Tech Mahindra CFO Rohit Anand added that their large deal pipeline is ‘one of the best’ over the last five years, as the company focuses on growing regions such as 5G and customer experience management, among others.
Cognizant said it was seeing some large deal opportunities as companies “reimagine their workflows and business processes with automation.”
