IT-BPM to slow down amid recession fears, inflation
The IT-Business Process Management (IT-BPM) services market is expected to grow by 6.7% during the fiscal year (F.Y.) 2023, down from the 10.4% growth in FY 2022, as concerns over inflation and recession rise across the United States and Europe.
In a report by The Economic Times, growing inflation concerns caused the IT index on the Bombay Stock Exchange (BSE) to fall by 17% in the past six months, even as IT firms themselves have reported strong numbers.
However, Everest Group CEO Peter Bendor-Samuel, said that the growth fundamentals of the industry will be “stronger than ever” and will continue to support the long-term demand mega-upcycle.
The current deals are more likely to benefit full-stack providers like TCS, Infosys, among others, while niche providers may face hiccups.
Everest’s initial forecast for April 2023 to March 2025 expects the base case growth of the IT services industry to increase by six per cent year-on-year in organic constant currency growth terms.
This forecast factors in a moderate impact from the potential recession, which would be partially offset by strong fundamental growth drivers, Bendor-Samuel added.
