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<ul><li>The IT sector outperformed the broader markets in 2021 and many continue to do so this year as well backed by pent up demand for digital transformation.</li><li>Order book, deal pipeline and hiring trend indicate that the demand momentum could sustain in 2022, say analysts.</li><li>Earnings season begins with the results of major IT companies — <keyword id="6354512" type="General" weightage="20" keywordseo="infosys" source="Orion">Infosys</keyword>, <keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion">TCS</keyword> and <keyword id="10862" type="General" weightage="20" keywordseo="wipro" source="Orion">Wipro</keyword> — on January 12.</li></ul>Infosys, TCS and Wipro are among India’s top five technology services giants that will declare their quarterly earnings on Wednesday (January 12). For the last three months ending December 2020, consensus on the street seems to be that the earnings, for all the companies, are likely to strong growth. Remarkably, Infosys is likely to outpace TCS. <div type="image" title="infosys" height="900" width="1200" msid="88802110" hostid="261"></div>The tech party is likely to continue The last three months of any year is usually not the best time for India’s software exporters but the street is excited. This space has been one of the biggest gainers of the pandemic and that trend is likely to continue. In fact, foreign portfolio investors (FPIs) seem to be betting big on this space given their weightage in <a href="https://economictimes.indiatimes.com/markets/stocks/news/it-sector-weight-in-fpi-portfolio-at-record-high-in-december/articleshow/88737301.cms?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Marketnewsletter&amp;ncode=609ddbe86ff2ff11618ff79bd180e80cd758fbea4c2dfe44681cd9faffcdd48188b59b1090491028dcd35b3a89d06fcfdd8912cfa3db8f278f6031edf028b4907f97bf07e2eb26884a6269d018789df0">technology stocks has risen to a multi-year high.</a> Optimists hark back to the improved guidance from Accenture last month, where the Nasdaq-listed information technology (IT) giant, which <a href="https://www.businessinsider.in/business/corporates/news/indian-it-firms-infosys-wipro-tcs-and-others-gain-after-us-based-peer-accenture-raised-fy22-revenue-guidance/articleshow/88335343.cms">increased its growth estimate </a>for the current financial year. And Infosys may beat TCS in revenue growth, according to at least two analysts. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stock price change in last 5 days </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-4.5% </td></tr></tbody><tbody></tbody></table>Although TCS bagged 13 deals, the highest number of orders, Infosys may show better revenue growth compared to the Tata Group company, according to analysts at two broking firms, India Infoline and Motilal Oswal. Infosys shareholders have the ramp up in the Daimler contract to thank for this. The top IT companies are expected to post a revenue growth around 3-4.5%. Analysts at JM Financial expect IT major Infosys to raise its revenue guidance for the financial year 2022 to 18-19% from current 16.5 - 17.5%. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top IT companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Expected revenue growth in Oct-Dec </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.2% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.5% </td></tr></tbody><tbody></tbody></table>Source: India Infoline *Revenue growth in constant currency on a sequential basis The demand for IT services has been stronger than ever since the start of the pandemic, and that’s likely to continue. However, the biggest challenge of the last few months for the entire sector, the high levels of attrition, may have peaked, according to Motilal Oswal, another Mumbai-based broking firm. But the easing may not be enough to improve margins yet. “Among Tier I players, EBIT [earnings before interest and taxes] margin will be in a tight (-20 basis points to +40 basis points compared to three months ago) range, although they will see a steep decline v/s 3QFY21 profitability,” a Motilal Oswal report dated January 3 said. Here, if Accenture’s numbers are any sign, its attrition rate declined to 17%, which is still very high compared to other IT players, from 19% just three months earlier. Another factor that may play a significant role in the earnings of these software exporters is the nearly 3% weakening of the rupee during the three months between September and December. A weaker rupee magnifies the numbers for these companies who primarily earn in dollars and other foreign currencies. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/elon-musks-starlink-faces-its-first-setback-in-india-even-before-launch/articleshow/88702976.cms">Elon Musk’s Starlink faces its first setback in India even before launch</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/future-retail-hindustan-unilever-bharti-airtel-and-other-hot-stocks-on-january-5/slidelist/88701641.cms">Future Retail, Hindustan Unilever, Bharti Airtel and other hot stocks on January 5</a>

Infosys may show faster growth than TCS in the Dec quarter, say analysts

<ul><li>IT giant <keyword id="10862" type="General" weightage="20" keywordseo="wipro" source="Orion">Wipro</keyword> fell to its 1-year low followed by sharp fall in other IT stocks.</li><li>Reportedly, US-based investment banker JP Morgan has downgraded its rating on <keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion">TCS</keyword>, HCL Tech, Wipro, L&amp;T Tech to ‘underweight’ from ‘neutral’ on potential macro slowdown.</li><li>Indian stocks mirrored its global peers today that fell sharply as large retail giants like Walmart, Target delivered disappointing earnings.</li></ul>Azim Premji owned Wipro fell by 5.7% on May 19 to touch its lowest point yet in a year. HCL and Infosys too fell closer to their 52-week lows and TCS and Tech Mahindra too are racing towards it. All this is an after effect of the massive selloff in the US markets - which is where most of our tech majors’ revenues come from. The American stock markets fell after its top retailers Walmart and Target reported poor earnings indicating pain in the economy. “The American retail majors Walmart and Target have disappointed on the Q1 earnings front, indicating that even large companies are unable to cope with the supply chain and inflationary woes. This has created a huge sell-off and meltdown in the majority of the stock markets globally. India's WPI inflation jumped to a 17-year high, this will force RBI to further hike interest rates,” said Parth Nyati, Founder, Tradingo. Recently, Goldman Sachs CEO David Solomon told CNBC that there is a reasonable chance that the <a href="https://markets.businessinsider.com/news/stocks/goldman-sachs-ceo-recession-odds-economy-david-solomon-fed-rates-2022-5">US may head into a recession </a>while he urges caution for big businesses. “US markets saw the worst sell off since June 2020 as inflation fear looms. A day before Walmart posted its results and pruned its earning forecast. The Indian economy is set to face jitters due to rising inflation in the US thus, making further interest rate hikes all the more important,” said Mohit Nigam, head - PMS at Hem Securities. Margin headwinds for the Indian IT majors ahead JP Morgan has <a href="https://www.livemint.com/market/stock-market-news/tcs-3-other-largecap-it-stocks-downgraded-by-jpmorgan-11652935827467.html">reportedly</a> downgraded its ratings on TCS, HCL Tech, Wipro, L&amp;T Tech to ‘underweight’ from ‘neutral’ on potential macro slowdown. According to the brokerage firm, the sector would face rising margin headwinds in the near term and revenue headwinds in the medium term from a potential macro slowdown. It means that the sector’s earnings upgrade cycle is behind it. The IT stock fall today mirrored that of its global peers in the US market - which saw the biggest fall in almost two years. Amazon, Tesla, Apple, Alphabet, Microsoft too fell by over 1-2%. From being the top gainers last year to now top losers, IT firms have seen the worst of all <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top losers in Nifty 50 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% fall today </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Share price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">52-week low </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.78% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹453 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹450.10 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.80% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,011 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹922.05 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.18% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,431 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,333.55 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.13% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,271 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,053 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.04% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,113 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹963 </td></tr></tbody></table> The domino effect of inflation to economy to IT spends There are enough reasons for investors to believe in a massive economic slowdown and a potential recession as prices of commodities spiked sharply in the last few months. While the situation was bad after the pandemic, the Russia-Ukraine war hammered it even more. The war led to rise in crude oil prices, essential food items, fuel, electricity etc. High inflation leads to poor demand thereby impacting the profitability of large companies. Inflation is at a 40-year high in countries like the UK, and US. “Global inflation has become the biggest spoilsport and has derailed the economic growth recovery globally,” said Nyati. In an ideal situation, the fall in Rupee value against the Dollar should be good news for IT firms which earn in Dollar. But this too gave no cushion for the stocks as investors seem to believe that would earn too little in the first place. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/ethos-ipo-either-avoid-or-go-long-term-say-analysts/articleshow/91662449.cms">Ethos IPO — Either avoid or go long-term say analysts</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/goa-has-the-highest-car-ownership-in-india-check-out-the-states-with-highest-and-lowest-car-ownership/slidelist/91664118.cms">Goa has the highest car ownership in India, check out the states with highest and lowest car ownership</a>

TCS, Wipro & Infosys saw a massive selloff after Walmart & Target’s revenues fell — explaining the domino effect

New Delhi, Work from Home and Destination Hiring are the new trends that emerged in 2020 according to the ITeS Power Movers 2020 Report by Wizikey, Asia's fastest-growing PR-SAAS start-up. The report highlights the top 25 players in the Indian ITeS sector. As per the ITeS Power Movers 2020 Report, <keyword id="6354512" type="COMPANY" weightage="20" keywordseo="Infosys">Infosys</keyword>, <keyword id="6357150" type="ORGANIZATION" weightage="20" keywordseo="tcs">TCS</keyword>, <keyword id="10862" type="CITY" weightage="20" keywordseo="Wipro">Wipro</keyword>, IBM, Cognizant are the top 5 ITes players of 2020 (mentioned according to rank). Further, a breakdown by services and product reveals that, at the top, in ITeS Services are the three Indian IT giants - Infosys, TCS and Wipro. In the Enterprise Product category, <keyword id="28251" type="CITY" weightage="20" keywordseo="Dell">Dell</keyword>, HP, Cisco and <keyword id="43340" type="CITY" weightage="20" keywordseo="Oracle">Oracle</keyword> emerge as leaders. The report talks about emerging trends within the ITeS space such as adoption of work from home technologies, inclusion of cloud offerings and the strong lineup of acquisitions &amp; partnerships that were witnessed during the year. An analysis of the announcements by top players reveals that the pandemic has successfully reversed the traditional outsourcing trend in this industry and given rise to destination hiring as a popular practice. Commenting on the trend, Anshul Sushil, CEO &amp; Co-Founder, Wizikey, said: "With mass layoffs and intense pay cuts making headlines in the first half of the year, the Indian IT industry definitely has gone through its own share of headwinds. It has taken time for them to adopt to the new normal. By diving through news via our analytics tools, we deciphered that destination hiring and remote working are the top emerging trends in the industry." Sharing his views on the importance of news analytics for brands, he said: "At Wizikey, we analyse millions of news data points with <keyword id="1157290" type="COMPANY" weightage="20" keywordseo="Big-Data-technologies">Big Data Technologies</keyword> such as predictive analytics and machine learning. This deep dive into all sectors and news articles helps us create meaningful and important data insights for various brands which they can use in creating their differentiated positioning buckets with relevant media platforms and consumer circles." The report dissected the top trends in the industry: Global imprint: Amidst low sentiment, and travel and visa uncertainties, most ITeS firms announced destination hiring plans. The pandemic reversed the outsourcing trend and gave the world far more confidence in managing operations anywhere around the globe Work From home: Most IT players adjusted to the post lockdown new realities of the universe. All the companies in the sector made massive shifts embracing work from home as the new normal. Being the largest white collar employer in the country, hiring reconciliations, virtual interviews and work from home made buzz for fresher to mid-level hiring. Clearing way for cloud: It rained cloud offerings for the ITeS category. Most players announced new products that could foster better work from home solutions for the After Covid-19 world. 4 out of the top 5 players announced initiatives to strengthen cloud offerings Inorganic Growth: A lot of players in the sector found opportunities of inorganic growth and new partnerships in these unusual times. All the top players announced plans of acquisitions and partnerships in a Covid-19 driven world. "We have used 9 metrics or factors for the findings namely Sentiment Score, an indicator of perception of the company in the media, Prominence Score includes coverage in reputed media houses, <keyword id="10483580" type="PERSON" weightage="20" keywordseo="consistency-score">Consistency Score</keyword>, Volumetric Score, LeaderHead Score includes company focused media coverage, Range Scores measuring engagement with diverse journalists and publications, Wizikey Newsmaker Score which is the combined weighted score of all the metrics and finally, Wizikey Rank is assigned based on Wizikey Newsmaker Score," Sushil said. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-infosys-wipro-jubilant-foodworks-bajaj-auto-majesco-and-others/articleshow/79909712.cms">Top stocks to watch – Infosys, Wipro, Jubilant FoodWorks, Bajaj Auto, Majesco, and others</a> <a href="https://www.businessinsider.in/stock-market/news/there-are-one-of-only-17-indian-companies-out-of-500-that-aced-the-du-pont-test/articleshow/79911627.cms">There are one of only 17 Indian companies out of 500 that aced the Du Pont test</a> <a href="https://www.businessinsider.in/business/corporates/news/wipro-buyback-offer-details-and-700-million-metro-ag-deal-drives-share-price/articleshow/79911875.cms">Wipro offers 10% more to buy back shares and signs a $700 million deal with Metro AG – everything that’s driving the IT services stock higher today</a>

Infosys, TCS and Wipro are the top newsmakers of 2020 in the IT sector, says report

<ul><li>Any lead that Tata Consultancy Services (TCS) had gained over Infosys has nearly been erased.</li><li>Infosys outperformed TCS in Q2 2020 and it looking to boost the growing revenue from its digital services.</li><li>TCS' digital business, on the other hand, is slowing down.</li></ul>Infosys performed considerably better than Tata Consultancy Services (<a href="https://www.businessinsider.in/business/news/tcs-q2-earning-report-profit-at-8042-crore/articleshow/71521639.cms">TCS</a>) during the second quarter of the current financial year. The Indian MNC has even raised its full-year guidance to 9% to 10%. Valuation premium that TCS had gained over Infosys through the early part of 2019 has been nearly been erased, according to Nirmal Bang Institutional Equities. Infosys expects bottom line growth from its digital sector where it feels it will be able to capture a higher premium from its clients. "Digital pricing is a new area we are looking at — how we price digital service and command a premium from our clients," said CFO of Infosys, Nilanjan Roy, during the earnings call. "Our digital margins are higher than our core business, that's something we already know. I think the way we repurpose our digital talent and looking at the scarcity, we think there's an opportunity of how to price this scarce talent — depending on skills, experience, what sort of clients they work with," he added. TCS' digital business, on the other hand, has slowed down from being on track to cross 40% last quarter to a mere 28% at the end of September 2019. "We downgrade TCS to neutral and strike it off our list of conviction picks following 4% EPS (earnings per share) cut and a weak growth trajectory," according to analysts at HDFC Securities Institutional Research. Here's a comparison of key metrics of the two tech giants in the three months between June and September 2019: <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue growth in constant currency terms compared to last year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.4% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Full-year guidance </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9-10% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Single digit growth </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Deal wins </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$2.8 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.16 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hiring </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,457 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14,097 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Digital services growth </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">38.4% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">27.9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">EBIT Margin </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">21.7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">24% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Forex impact </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(-)15 bps (June-Sep) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(-)260 bps (Apr-Sep) </td></tr></tbody></table>

Here’s how Infosys and TCS earnings performance in Q2 2020 stack up against each other

<ul><li>Tata Consultancy Services is India’s most valuable brand worth $45.5 billion. </li><li><keyword id="6358815" type="General" weightage="80" keywordseo="tech" source="Orion">Tech</keyword>nology majors and consumer tech brands lead <keyword id="1199021" type="General" weightage="80" keywordseo="kantar" source="Orion">Kantar</keyword> BrandZ India Top 75 list, contributing to over a third of total brand value. </li><li>Flipkart, BYJU’S, <keyword id="6358977" type="General" weightage="50" keywordseo="swiggy" source="Orion">Swiggy</keyword> and <keyword id="6376684" type="General" weightage="50" keywordseo="nykaa" source="Orion">Nykaa</keyword> are India’s top consumer brands. </li><li>India’s top 75 brands are worth a combined $393 billion, equivalent to 11% of India’s national GDP.</li></ul> Tata Consultancy Services is India’s most valuable brand with a valuation of $45.5 billion, according to Kantar BrandZ 75 brands. <keyword id="6357150" type="General" weightage="50" keywordseo="tcs" source="Orion">TCS</keyword> claimed the top spot from HDFC Bank, which is now ranked number 2 with a valuation of $32.7 billion. <keyword id="6354512" type="General" weightage="50" keywordseo="infosys" source="Orion">Infosys</keyword> ($29.2 billion) and <keyword id="6653" type="General" weightage="50" keywordseo="icici-bank" source="Orion">ICICI Bank</keyword> ($11 billion) made it to the top 10 for the very first time. Tech and banking brands accounted for over half of the total value. Six B2B tech brands and 11 consumer tech brands contributed 35% to the total value. Salience– the ability of brands to spring quickly to mind when a consumer has a need was a common feature in India’s Top 10 brands. Tech brands and banks account for half the brand value The list of 75 brands across 23 categories bounced back from the pandemic lows to increase their brand value by a massive 35% CAGR since 2020. India’s top 75 brands are worth a combined $393 billion, equivalent to 11% of India’s GDP. “India’s leading brands have grown at an exceptional rate, despite global economic headwinds, putting the disruption from Covid-19 behind them. Brand owners will need to work harder to identify and build on what makes them worth paying for and ensure ROI on their marketing expenditure to avoid a margin squeeze, ” <keyword id="10859748" type="General" weightage="50" keywordseo="deepender-rana" source="Orion">Deepender Rana</keyword>, executive MD - South Asia, Insights Division, Kantar said. Between August 2014 and June 2022, the equity index Sensex gained 63.8%, while the brand value of these companies rose 81.8%, claimed Kantar. As many as 11 consumer tech brands made it to the list and also contributed to 11% of the total brand value. The four most valuable brands in the consumer category were Flipkart (No. 12; $8.9 billion), Byju’s (No. 19; $5.5 billion), Swiggy (No. 20; $4.8 billion) and Nykaa (No. 25; $3.7billion). Airtel edges out Jio to lead in telecom Among telecom providers, Airtel stood at number 4 and Jio was placed at number 10. Key newcomers included Vi, ranked number 15 post the merger between Vodafone and Idea. Byju’s stood at number 19, becoming India’s most valuable education brand. As compared to the rest of the world, Indians are more willing to choose environment conscious brands due to ongoing climate change. Overall, 65% of Indians feel anxious about climate change, and 64% believe businesses must play their part, reported Kantar. The highest-ranking brands in the Top 75 are clear on purpose and have a relevant sustainability agenda. Platforms like <keyword id="830092" type="General" weightage="50" keywordseo="zomato" source="Orion">Zomato</keyword>, ranked 30th, uses climate conscious deliveries by reducing and offsetting carbon emissions. Swiggy and Flipkart also help smaller local brands to connect with consumers via its platform. “Purposeful and sustainable brands are being rewarded. Indian consumers look further than the brand attributes that affect them personally – they want brands to improve people’s lives and have a positive impact on wider society,” Soumya Mohanty, managing director -insights division, Kantar said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/medicines-and-biryani-from-the-sky-made-in-india-drones-witness-growth-post-import-ban/articleshow/94203544.cms">Medicines and Biryani from the sky: Made-In-India drones witness growth post import ban</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/video-ai-startup-awiros-raises-7-million-in-series-a-funding/articleshow/94199580.cms">Video AI startup Awiros raises $7 million in Series A funding</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/patreon-lays-off-17-of-its-staff/articleshow/94198385.cms">Patreon lays off 17% of its staff</a>

TCS is India's most valuable brand worth $45.5 billion: Kantar

<keyword id="6358777" type="LOCATION" weightage="20" keywordseo="New-Delhi">New Delhi</keyword>, <keyword id="6357342" type="UNKNOWN" weightage="20" keywordseo="Hiring">Hiring</keyword> activity in India saw a 14% jump in December as compared to the <keyword id="9393572" type="UNKNOWN" weightage="20" keywordseo="previous-month">previous month</keyword>, signalling a clear recovery of the job market in the post-Covid months, a new report said on Thursday. The overall hiring at year-on-year level showed a decline of only 10% in December, according to <keyword id="218117" type="COMPANY" weightage="20" keywordseo="Naukri-com">Naukri.com</keyword> 'JobSpeak' report. The hiring in the insurance sector grew by more that 45% in December, as Indians felt the need for securing their health and businesses in the post-Covid era. The auto and ancillary sector (33 per cent) continued to register <keyword id="42546" type="PERSON" weightage="20" keywordseo="Growth">growth</keyword> in sequential hiring with increased consumer demand during the year-end period. Other key sectors such as BFSI (+18%), Pharma/Biotech (+28%), FMCG (+21%) and IT-Software (+11%) too have shown positive growth in hiring. "Key sectors like hospitality, travel, auto and retail are still bouncing back, and the sequential numbers reassure us of robust recoveries in 2021," said Pawan Goyal, Chief Business Officer, Naukri.com. "As we look forward to a brighter year ahead, the overall hiring sets in the right direction for the closing month." Within metros, Pune and Delhi led the sequential recovery at more than 18% and 16% increase in hiring, respectively, followed by Kolkata (+14%) and Mumbai (+10%). Coimbatore saw the highest hiring growth of +30% among Tier-2 cities, followed by Ahmedabad at +20% and Jaipur at +15% in December. In fact, hiring of professionals in the hotels/restaurants domain also saw an uptick of 13% sequentially, indicating the revival of the sector. Hiring activity in the month of December declined by 10% vs the last year, the findings showed. While Bengaluru (-1%), Pune (-2%), and Hyderabad (-5%) were less impacted given the growing demand for IT professionals in the virtually connected world, cities such as Mumbai (-25%) and Delhi (-18%) saw a decline in hiring activity in December as compared to the same month last year. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-tcs-ril-maruti-airtel-godrej-properties-oberoi-realty-sobha-and-others/articleshow/80145182.cms">Top stocks to watch — TCS, RIL, Maruti, Airtel, Godrej Properties, Oberoi Realty, Sobha, and others</a> <a href="https://www.businessinsider.in/business/auto/news/ducati-is-launching-12-new-bikes-in-india-in-2021-check-the-launch-dates-here/articleshow/80146997.cms">From Scrambler and Multistrada to Monster and SuperSport — Ducati is launching 12 new bikes in India, check the launch dates here</a> <a href="https://www.businessinsider.in/india/news/petrol-has-reached-an-all-time-high-in-delhi-after-a-hike-of-23-paise/articleshow/80146505.cms">Petrol price is now past ₹84 in Delhi, over 62% of it is taxes</a>

Hiring activity recovers by 14% in India in December 2020, says report

<ul><li>Excerpts from interview conducted by <a href="https://www.businessinsider.com/author/joe-ciolli?IR=T" data-type="tilCustomLink">Joe Ciolli</a>, <a href="http://businessinsider.com/" data-type="tilCustomLink" target="_blank">Business Insider</a>.</li><li>The Indian government is hoping to stimulate the economy towards faster growth with the upcoming <keyword id="8192304" type="UNKNOWN" weightage="20" keywordseo="union-budget-2020">Union Budget 2020</keyword>.</li><li><keyword id="1422411" type="PERSON" weightage="20" keywordseo="Rajesh-Gopinathan">Rajesh Gopinathan</keyword>, CEO and MD of <keyword id="6357585" type="COMPANY" weightage="20" keywordseo="tata-consultancy-services">Tata Consultancy Services</keyword> (TCS) told Business Insider that he hopes that the government’s new measures won’t make foreign exchange prices more volatile.</li><li>A weakening rupee might help IT companies hedge in the short run, but a stable foreign exchange is a prerequisite for long run contracts.</li><li>He believes education, government, and healthcare are that the next three verticles ripe for digital growth.</li><li>TCS is also hoping that the insurance sector will get liberalised and follow in the footsteps of banking and financial services.</li></ul>Indian IT majors have a set of problems that are diametrically different from that of other domestic firms. Their growth story began in foreign countries, like the US, and though their domestic clients grew, international business is a major chunk of their revenue. Which means foreign exchange plays a big role in their fortunes. So, any move to ensure that India’s slowing economy is triggered will also strengthen the rupee, which is bad news for those who earn in dollars and euros. Crisis and stimulus “We’re quite comfortable with the policymaking in India for the last many years. Our only hope is that the current credit crisis and the stimulus don’t spike the foreign exchange prices,” Rajesh Gopinathan, CEO and managing director of Tata Consultancy Services (<a href="https://www.businessinsider.in/careers/news/tcs-plans-to-add-30000-freshers-to-its-ranks-to-reshape-its-cost-structure/articleshow/71524019.cms">TCS</a>) told Business Insider. At the same time, Gopinath hopes that the government would give impetus to three sectors — government, <a href="https://www.businessinsider.in/why-indias-health-budget-needs-more-infusion/articleshow/70082859.cms">healthcare</a> and <a href="https://www.businessinsider.in/niti-aayog-wants-education-budget-to-increase-further/articleshow/69941463.cms">education</a> — where technology implementation is at its lowest. Their growth and subsequent digitization will help IT companies build a robust domestic business. “They have not yet been properly revolutionized by technology, where the opportunity is huge and relatively untapped. They are still far behind,” he said. TCS also hopes that the <a href="https://www.businessinsider.in/business/news/life-insurers-bat-for-100-pc-foreign-investment-in-sector-via-automatic-route/articleshow/72874288.cms">insurance sector will get liberalised</a> and follow the example set by banking and financial services, which was one of the first sectors to be liberalised in the Indian economy. According to Gopinathan, “Insurance is still not liberalised. As the government is liberalising more, there is greater private sector investment and greater acceptance of technology and leverage.” After all, <a href="https://www.businessinsider.in/business/corporates/news/tcs-infosys-hcl-tech-and-wipro-shares-react-to-bfsi-slowdown/articleshow/73420055.cms">BFSI</a> is the biggest segment of TCS. Economic stimuli could make foreign exchange more volatile This budget, Finance Minister Nirmala Sitharaman is expected to announce a <a href="https://www.businessinsider.in/budget">slew of measures </a>to help stimulate the economy. India’s growth has dropped from 7% last year to <a href="https://www.businessinsider.in/policy/economy/news/international-monetary-fund-cuts-india-gdp-growth-estimate/articleshow/73441006.cms">4.8% expected this year</a>. Its fiscal deficit hit 114.8% of 2019-20 budget estimate according to Controller General of Accounts (<a href="https://www.businessinsider.in/business/news/fiscal-deficit-hits-115-of-budget-estimate-till-nov/articleshow/73049042.cms">CGA</a>) in November. Frequent stimuli and their effect on economic growth does not bode well for IT companies who rely heavily on outsourcing. It means currency markets turn volatile as do equity markets, which is extra bad news since international tensions are already playing a big part in currency fluctuation. “We want stability. For us, forex stability is the most important part of it,” said Gopinathan. In spite of the popular myth, a falling rupee is also not always good news for IT companies. Most IT majors hedge their foreign exchange earnings and they get into trouble when currency value dips or rises beyond the predictable band. In the long run, volatility and uncertainty are an obstacle. Of late, it is becoming tough for <a href="https://www.businessinsider.in/policy/economy/news/india-is-slowing-down-so-fast-that-even-experts-cant-keep-up/articleshow/72295703.cms">experts to predict </a>the Indian economy. <keyword id="6357549" type="UNKNOWN" weightage="20" keywordseo="Indian-IT-companies">Indian IT companies</keyword> will bear the largest impact of foreign currency fluctuations, especially when it comes to the dollar since nearly 70% of software exports land in the US. Education is ripe for disruption In addition to stability, TCS is also looking forward to exponential growth in the <a href="https://www.businessinsider.in/budget/news/education-budget-2020-the-rise-in-budget-allocation-for-education-is-just-not-enough/articleshow/73182288.cms">education sector</a> is the “most ripe for disruption”. “That ability to personalise education and to really switch on to life long learning as a concept we think is possible. And, it’s possible at scale,” he said. Over the past couple of years, TCS has observed that self-guided learning is increasing significantly. The company has been rethinking the role of schools and universities in terms of where knowledge comes from and what testing can achieve. If testing and knowledge acquisition shifts online and becomes tech-enabled, schools and college will be geared towards soft skills — like communication and values among others. “Directionally, the government is very focused on raising investments in education and research, which we believe is structurally required,” said Gopinathan. Healthcare is inefficient, says Gopinath While education is ready for change, <a href="https://www.businessinsider.in/budget/news/health-budget-2020-after-963-children-died-in-one-hospital-in-the-last-year-indians-will-be-watching-the-centres-allocation-to-upgrade-public-healthcare/articleshow/73169619.cms">healthcare</a> is one of the most inefficient industries — especially when it comes to data privacy. According to Gopinathan, solutions are available but legislation is yet to catch up. “Regulation needs to be designed for what it is seeking to achieve rather than justifying the regulatory bureaucracy,” he said. If there is a large-scale shift in mentality, the largest IT company in the country, will be able to gain a lot. After all, it is part of gigantic tech projects undertaken by the government and other industries. TCS has already been working with the government to digitise the passport system and citizen registry. It’s also worked on a project with the stock exchange, the State Bank of India and payments systems. “It’s an exciting market with its own challenges — not an easy market to operate in,” said Gopinathan. See also: <a href="https://www.businessinsider.in/tech/news/budget-2020-indias-mobile-phones-makers-fear-for-jobs-in-the-face-of-fewer-incentives-and-global-competition/articleshow/73261138.cms">Budget 2020: India’s mobile phones makers fear for jobs in the face of fewer incentives and global competition</a> <a href="https://www.businessinsider.in/budget/news/union-budget-2020-allocation-to-space-exploration-should-be-considered-a-seed-fund/articleshow/73665432.cms">Union Budget 2020: 'Allocation to space exploration should be considered a seed fund'</a> <a href="https://www.businessinsider.in/defense/news/indias-budget-allocation-for-defence-has-remained-fairly-static-for-the-past-five-years/articleshow/73153930.cms">Budget 2020: Five charts that explain what you can expect from India’s defence expenditure this year</a>

Exclusive: TCS CEO shares his hopes and fears from the budget 2020

<ul><li>Jobs in India’s IT sector will grow in 2020, in terms of both hiring and compensation. </li><li>The sector might witness almost 10% job growth— for freshers and juniors. </li><li>It had already created over 40,000 job opportunities in the first half of FY20. </li><li>Mumbai, Bangalore, Pune and Delhi are expected to create nearly 23,000 <keyword id="57650" type="PERSON" weightage="20" keywordseo="IT-jobs">IT jobs</keyword> in the same period.</li></ul>The coming new year could bring much-needed good news for aspiring young engineers. In 2020, India’s IT sector jobs might grow by 10% — for freshers and juniors. The sector created over 40,000 job opportunities in the first half of FY20, according to a report by staffing firm <keyword id="133742" type="COMPANY" weightage="20" keywordseo="TeamLease">Teamlease</keyword> Services. “This year, there has been sustained growth in the sector which now stands at ₹13 trillion. The government has backed the industry strongly introducing many reforms like the national level programme to enable mainstream adoption of AI and the ease of doing business for IT led start-ups. These have been the key growth drivers for job creation,” said Supaul Chanda, Business Head, TeamLease Digital. As many as 23,000 IT jobs will be created in Mumbai, Bangalore, Pune and Delhi. “While metro cities will continue to captivate maximum professionals, even geographies like Kolkata, Chandigarh and Indore will be the hot spots for IT jobs,” Chanda added. These IT jobs will traverse across sectors. Manufacturing and services sectors — including agriculture, telecom, real estate and KPOs — will increase hiring for tech roles. The sector had employed over 4.1 million people during the second half of FY19, the report said. People hired in April and September 2019 <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sectors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">New hires </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Logistics </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">28,650 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Educational Services </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">24,380 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FMCG </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17,400 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FMCD </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17,100 </td></tr></tbody></table> The greener <a href="https://www.businessinsider.in/careers/news/benching-firing-and-re-deploying-the-story-of-20000-employees-at-tech-majors/articleshow/71934414.cms">outlook for 2020</a> might also make up for the many jobs lost in 2019 in auto, textiles and other sectors. “Overall, 8 out of the 19 sectors are expected to witness a double digit rise in job creation. Logistics and educational services alone will add 14.36% more jobs during the period October-March, 2019-20 indicting the dip in the net employment outlook to be more of a passing phase,” said Rituparna Chakraborty, co-founder &amp; executive vice president, TeamLease Services. The firm also predicts that blue collar jobs in functional areas will grow by 3%. See also: <a href="https://www.businessinsider.in/careers/news/india-is-expected-to-witness-7-surge-in-job-creation-in-healthcare-it-and-ecommerce-over-the-next-six-months/articleshow/72440967.cms">India is expected to witness 7% surge in job creation — Healthcare, IT and ecommerce to hire over the next six months</a> <a href="https://www.businessinsider.in/tech/enterprise/news/tcs-infosys-hcl-tech-earnings-growth-is-slowing-that-will-mean-more-jobs-for-freshers/articleshow/73027371.cms">Indian techies looking to change jobs in 2020 — business is getting tighter for the likes of Infosys, TCS, HCL Tech and their peers</a> <a href="https://www.businessinsider.in/careers/news/ai-and-machine-learning-jobs-are-in-demand-but-hiring-is-difficult/articleshow/72879872.cms">Indian CEOs are having a tough time retaining AI, ML, and data science experts</a>

IT jobs will grow by 10% in 2020 and so will salaries, says Teamlease survey

<ul><li>Earnings of Indian tech companies are slowing down but the share prices are still hot! </li><li>The stock of Infosys, TCS, HCL Tech, and Tech Mahindra have rallied while earnings estimates have been cut</li><li>The margins of these software exporters have shrank despite a favourable exchange rate against the US dollar. </li></ul>Earnings of Indian tech companies are slowing down but the share prices are still hot! The stock of Infosys, TCS, HCL Tech, and Tech Mahindra have rallied while earnings estimates have been cut. The business from banking and retail clients — which make for nearly half of the revenue for Indian IT firms — have slowed down. The margins of these software exporters have shrank despite a favourable exchange rate against the US dollar. But the stocks have gained as much as 18% this year. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 The financial performance of these companies is not going to improve in a hurry. Foreign investors know this, which is why they pulled out the maximum chunk of their money in India from this sector. Yet local investors are buying into these stocks and the managements' narrative that the growth in digital businesses will offset the weak demand for legacy services — that has led to the sharp rise in stock prices when the growth is getting capped. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Meanwhile, the EBIT (earnings before interest and tax) margins for the top four IT companies have fallen by 350 bps to 21.7% over the last 5 years until the end of September 2019, according to a recent Ambit report. This is despite a 16% fall in the value of rupee, which should ideally boost the margin because these firms make most of their revenue in dollars. The pain is far from over and the margin could fall another 120 basis points by the end of financial year ending March 2022, according to Ambit. The pain for TCS is getting worse Tata Consultancy Services (TCS) is likely to end 2019 on a sombre note. The software exporter owned by the Tata Group is likely to clock a revenue growth of less than 1% in constant currency terms between October to December 2019 quarter compared to three months ago, according to Centrum, a Mumbai-based broking house. Banking and retail verticals have decelerated further, the management told analysts at Centrum. The two verticals account for nearly 46% of the technology major's revenue. The slowdown could affect the full-year earnings too— Centrum expects the growth for financial year ending March 2020 to 8.5% before accounting for exchange rate changes. This would be sharply slower than the 11.4% the company clocked in the previous financial year. Infosys may be relatively better off The expected slowdown for TCS is coming at a time when Infosys is looking to reclaim the coveted pole position among India's IT stocks. The company has reportedly stepped up efforts to bag more deals, and bigger ones, with a special focus on government contracts in the Asia-Pacific region. Further, analysts at HDFC Securities recently said that Infosys could make $100 million to $150 million just from cost-saving initiatives. However, these are just efforts for which results are yet to be seen. In the mean time, as business gets tighter for the technology majors, they are looking to reduce cost by hiring more freshers. They are trying to bring costs down by hiring more people straight out of engineering colleges, and reducing the strength higher up in the corporate hierarchy. In the first 6 months of the year, the five tech companies named above hired over 64,000 freshers. TCS alone picked up 26,500 employees, and a large part of it has been at the bottom of the pyramid. That's not great news for people looking to spike their salary by changing jobs. SEE ALSO: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Indian techies looking to change jobs in 2020 — business is getting tighter for the likes of Infosys, TCS, HCL Tech and their peers

<ul><li>Tata Consultancy Services (TCS) has announced a second salary hike for its employees within a span of six months.</li><li>Last year in October, the IT major increased salaries by 6% to 8%.</li><li>This time around the company plant to hike wages by the same amount resulting in a cumulative boost of 12% to 14%.</li></ul>India’s biggest information technology (IT) services company, Tata Consultancy Services (TCS), is set to dole out a second round of increments for its employees within a span of six months. The last salary hike was announced by the IT major in October last year, where the increase in wages was between 6% to 8%. Sources told Business Insider, on the condition of anonymity, that the salary increments will be around the same this time around as well. This means employees will have received a cumulative boost of around 12% to 14%. “We can confirm that we are on track to give increments to all associates across our geographies effective April 2021, in line with our benchmarks,” a TCS spokesperson told Business Insider. This comes after TCS’ attrition rate dropped to a record low of 7.6%, as of 31 December 2020. The company currently has 4,69,261 employees under its wing after adding 15,000 more to its roster between the months of September to December. According to Milind Lakkad, head of human resources at TCS, over 96% of the company’s employees were still working from home before the New Year with only 3.4% in office. Despite the challenges caused by the COVID-19 pandemic, TCS reported its strongest Q3 growth in nine years in 2020. SEE ALSO: <a href="https://www.businessinsider.in/policy/news/indias-supreme-court-looks-into-allegations-of-nearly-four-crore-ration-cards-being-cancelled-because-they-were-not-aadhaar-linked/articleshow/81570339.cms">A Dalit mother lost her ration card and then her child to starvation — her fight for justice has now become a national cause at the Supreme Court</a> <a href="https://www.businessinsider.in/international/news/japan-is-the-only-country-that-does-not-allow-same-sex-marriage-within-the-g7/articleshow/81563467.cms">Japan’s same-sex marriage ban ruled ‘unconstitutional’ as India’s LGBTQ community waits in hope</a> <a href="https://www.businessinsider.in/science/space/news/finnish-photographer-jp-metsavainio-took-over-a-decade-and-1000-hours-of-photography-to-create-this-picture-of-the-milky-way-and-20-million-stars/slidelist/81563516.cms">It took over a decade and 1,000 hours of photography to create this picture of the Milky Way</a>

TCS to dole out a second salary hike within a span six months

<ul><li>Analysts expect the growth momentum in the IT services sector to continue on account of large deal wins and demand for digital transformation. </li><li>Infosys, TCS, Tech Mahindra and HCL Tech are expected to report a revenue growth anywhere between 3.5% to 5.5% for the period of April-June 2021.</li><li>However, Wipro’s topline is likely to stand out among the top-tier software exporters from India, thanks to the Capco acquisition</li></ul>India’s top software exporters like TCS, Infosys and HCL Technologies are likely to see their dream run continue in the first quarter of the financial year 2022. However, Wipro, one of the top five players in the sector may have had it better than the rest. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Growth estimate* </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Share price change since Feb end 2021 to June 2021 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">5.3% </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">26% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">4% </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">16% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">9.5% </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">33% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">3.60% </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">8% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">3.50% </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">19% </td></tr></tbody></table>*Source: Axis securities A big reason for Wipro’s outperformance may be the $1.45 billion acquisition of Capco, the largest ever buyout by the Bengaluru-based company. The shares of Wipro have led the IT pack ever since the new chief executive officer (CEO) Thierry Delaporte took charge in June last year. The company made about $2 billion last year from IT services and if Capco delivers the same amount of revenue as it did last year, it could add another $700 million to Wipro’s topline. That’s a 35% bump up a year straight away. Expectations are built up in the stock that has gained about 30% since the Capco deal was announced in early March, and closed in April. <div type="image" title="Wirpo stock price chart" height="900" width="1200" msid="84201479" hostid="261"></div> There is also a lot of apprehension. “The execution risk is further aggravated by a weak growth performance from Capco over the last two years – even after adjusting for the drag due to COVID-19,” said Motilal Oswal in its report dated March 4. “We’re guiding revenue growth of 2% to 4% in the first quarter, outside of Capco and Ampion,” Delaporte had said during the earnings call in April. Wipro has acquired Ampion, an Australia-based provider of cyber security, devops and quality engineering services. The move will strengthen its commitment towards clients and stakeholders in Australia and New Zealand (ANZ). The acquisition will close in the quarter ending June 30, 2021. It’s boom time for all tech companies For the rest of the top five IT services majors, the growth is likely to continue on the same trend seen since the pandemic broke out. “IT spending from North America and Europe has gained momentum and demand for digital transformation has increased exponentially,” Axis Securities said in a report dated July 6. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">New deals from April to June 2021 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Proximus, Ericsson, Virgin Atlantic, Alcatel-Lucent, Commercial Bank of Kuwait </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">ArcelorMittal Europe, Britvic, Archrock </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">HCLT </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">UD Trucks Corporation, Hitachi ABB Power Grids, McLaren Health Care </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Bristol Water, Transcell Oncologics, Levi Strauss &amp; Co </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Pret A Manger </td></tr></tbody></table> However, wage hike and rising attrition since the start of the year may dent operating margins of IT companies. Several IT companies have given second salary hikes to eligible employees in a calendar year 2020 as initially promotions had been deferred on account of the pandemic and business downturn. In the last one year, Nifty IT (the index of tech stocks) showed gains of 81% as compared to the benchmark Nifty50’s 46%. These are the estimates for topline growth for the sector. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Broking firm </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Apr-June average growth estimate for tier-I IT companies </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Prabhudas Lilladher </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">4.10% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Institutional Research </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">4% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Maybank Kim Eng </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">5.30% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">BOB Capital Markets </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">4.20% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Axis Securities </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">3%-7% </td></tr></tbody></table>Growth estimates are in comparison to the earnings for the quarter ended June 2020. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/clean-science-and-technology-ipo-maximum-broking-house-recommending-this-ipo/articleshow/84193873.cms">Clean Science and Technology, an Indian supplier to Bayer, has opened its IPO ⁠— and ‘subscribe’ is the unanimous call from analysts | Business Insider India</a> <a href="https://www.businessinsider.in/stock-market/news/gr-infraprojects-ipo-good-ipo-bet-for-long-term-as-per-analysts/articleshow/84193656.cms">GR Infraprojects IPO is for long term investors, say analysts | Business Insider India</a>

TCS, Infosys and HCL Tech will show a good quarter but Wipro’s earnings will outshine them all ⁠— here’s why

<ul><li>A strong CEO-CFO partnership can determine the success or failure in digital transformation – especially in uncertain times like a pandemic.</li><li>With the right approaches, CFOs can help CEOs drive growth, manage risks, and boost organisational performance – starting with transforming the finance function.</li><li>Building a digital finance function will streamline financial reporting and accelerate and deepen a company’s ability to pinpoint both opportunities and threats.</li></ul>The Chief Financial Officers (CFOs) have been heavily involved in their companies’ digital transformations. Even with the COVID-19 pandemic, global spending on digitising business practices, products and services is expected to grow by more than 10% to reach $1.3 trillion in 2020. Now CFOs must work closely with chief executives to steer their enterprises through the worst economic crisis in a generation. This CEO-CFO partnership — whether it is effective or not — will determine whether enterprises can withstand the financial impact of this crisis and move their organisations forward. Recent TCS research sheds new light on the unprecedented pressure that the pandemic has unleashed on organisations and particularly on their finance functions. A global survey of 287 companies, in July, with more than $1 billion in revenue found that 68% of them saw revenues decline. Moreover: <ul><li>Fewer than one-third of companies surveyed had implemented essential digital capabilities that enable them to pivot quickly in response to the crisis.</li><li> Only 23% have strong automation of core business processes</li></ul>For finance organisations with a mission to mitigate risks, shore up liquidity, understand how performance is changing and know precisely where the company and its customers stand. Lacking such capabilities is a wakeup call. Not having a sufficiently digital finance function means lacking accurate real-time data, and therefore navigating the crisis without a reliable compass. These organisations are now racing to catch up. Most are maintaining or accelerating their digital investments despite revenue pressures and the need to operate remotely. Companies have realised that such investment is critical to resilience and competitiveness during the pandemic and beyond. The investment also enables the CFO to better manage the organisation’s finances and support the CEO. The CFO’s unique role during a crisis A successful CFO generally sees herself as a strategic partner to the CEO. But during uncertain times, the CFO’s role typically changes. Risks and responsibilities rise. In some cases, crises also pose strategic opportunities. Some key matters that the CFO needs to address during a crisis include: <ul><li>External business risks: During uncertain times, litigation is likely to rise. Contracts that protect commercial and legal interests help the organisation stay focused and avoid unnecessary distractions. At the same time, having measures in place that help the company access what is rightfully due — such as contract clause monitoring, and early warning indicators — can assist with revenue growth and profitability.</li><li>Talent: As crisis-related anxiety levels soar, small steps can reinforce employee morale, loyalty and engagement. The CFO should ensure that payroll is processed on time, particularly if employees are concerned about the company’s stability. Additionally, the CFO should support empathetic policies for workers affected by the crisis. Especially in a services company or any organisation with a sizeable resource pool, it is beneficial in the short term to carry, as necessary, excess staffing capacity that will get absorbed once growth returns. This can help morale while boosting productivity when it is most needed. And the organisation can manage other costs to pay for the investment.</li><li>Driving growth: Uncertain times also present an opportunity to take a fresh look at the business and consider deploying different processes or frameworks. The finance function can help plan for such initiatives, building scenario analyses of how proposed changes will impact efficiency or optimisation. The function is also a key player in executing finalised plans.</li></ul>The CFO should also look at market penetration to assess opportunities for expanding the organisation’s horizons. Embarking on such projects demands not only investment capabilities but also the long-term conviction needed to make big moves despite economic turmoil. A wise decision during a crisis often delivers the best returns. A final consideration on growth involves the volatile currency and financial markets. It is critical for the treasury team to manage the enterprise’s currency and interest-rate exposures and continually take appropriate measures. This will help the CEO and business teams focus on business response, recovery and revival. <ul><li>Accurate forecasting: Always important, and it becomes even more consequential in times of uncertainty and disruption, when forecasts are more difficult. Of course, maintaining transparency and avoiding surprises is also important for investors and market participants.</li><li>Mergers and Acquisitions: There is usually a distinct ramp-up in M&amp;A activities during a crisis. The pandemic could present opportunities at attractive valuations. Companies often look to divest their non-core activities, which could constitute core businesses for another company. Having deployable funds and a long-term vision assists in such decisions. The CFO can play an important role by keeping the organisation in a state of readiness.</li></ul>Establishing the CFO as a strategic partner to the CEO TCS has observed that companies with highly digital finance functions have performed better over time, and particularly during the crisis. A CFO can be an effective partner to the CEO by seizing the opportunity to deploy digital capabilities that can improve efficiency and inform the executive team’s strategic decisions. In brief, a highly digital finance function helps a company and its CEO in several key ways. It is able to close the books and report financial results publicly on time and without extra manual effort. Digitisation ensures that team members can produce financial statements regardless of where they are working, and a timely release of financial results helps to reassure stakeholders that the company is operating smoothly despite crisis-related disruptions. Additionally, a digital finance function can more easily identify troublesome business areas and offer helpful ideas for addressing their challenges. For instance, the department can help determine which costs are strategic and should not be cut, and which costs can be delayed or reduced. Finally, the digital CFO can keep a close watch on collections, liquidity and any delinquency and take proactive steps to mitigate risks. These capabilities are always advantageous but given the sudden and intense disruption that many companies are experiencing during the pandemic, they are more important than ever. TCS’ finance department’s digital transformation Our observations about the effectiveness of highly digital finance offices are based not only on research and client experience, but also on the TCS finance department’s digital transformation. This experience offers instructive lessons for CFOs across industries, particularly during the current crisis. The pandemic hit TCS at perhaps the worst possible time for the finance function, just a few short weeks before the fiscal year ended (March 31, 2020). Even though all members of our finance team and auditors were working remotely from their homes, we were the first Indian public company to announce our fully audited results of operations from more than 50 countries where we do business. Results were released on schedule in April. This, at a time when, for instance, the U.S. Securities and Exchange Commission had issued a 45-day earnings extension and a number of companies in the S&amp;P 500 were delaying their quarterly earnings releases. Moreover, TCS was the first company in India to hold a virtual annual shareholder meeting. This occurred on June 11, 2020, the same date that had been scheduled months before the pandemic hit. This was only possible because we had extensively digitised our finance function over nearly two decades. TCS is a $22 billion company with 470,000 employees and more than a thousand large customers. Such a business cannot run efficiently or effectively without an integrated, enterprise-wide, single-instance financial accounting and reporting system. We undertake so many transactions that no one person — or even a team of people — in finance can see patterns rapidly or with the needed microscopic granularity. Technology is the lynchpin, the enabler. Capitalising on the digital transformation of the finance unit As the COVID-19 pandemic has made abundantly clear, every enterprise needs a digitally sophisticated finance function. Such a function is a means by which the CFO can be an indispensable partner to the CEO in running an organisation that is resilient and financially stable. Digitisation also enables the CFO and C-suite colleague to ensure that the organisation maintains adequate liquidity, generates strong cash flow, reduces the working capital cycle, and mitigates enterprise risks. A digitally transformed finance function also empowers the CFO to prioritise strategic investments and interventions that let the enterprise realise its core purpose. Of course, digital transformation cannot be achieved overnight. The initiatives and investments need to be made over time. Teams must be trained and oriented toward working in a highly digitised environment with a culture of adaptability tied to the organisation’s purpose. For the journey to succeed, having the right team is essential. Digital finance teams are content to let technology serve as bean counters while they focus on the company’s goals. They form an organisation that enables business unit leaders to understand what is happening based on key metrics and help implement interventions to deliver better results. This way the CFO can fulfill their role as an effective partner to the CEO and help the organisation thrive. The article has been exclusively curated for TCS Perspectives - TCS' Management Journal (by TCS Thought Leadership Institute). SEE ALSO: <a href="https://www.businessinsider.in/india/news/india-is-using-the-quad-alliance-to-get-help-from-the-us-japan-and-australia-to-match-chinas-covid-19-vaccine-push/articleshow/81408044.cms">India is asking the QUAD for money to boost vaccine production and counter China’s moves on the global stage</a> <a href="https://www.businessinsider.in/stock-market/news/gold-prices-are-falling-and-the-worlds-biggest-market-for-the-yellow-metal-is-hoping-for-more-shoppers/articleshow/81406658.cms">Gold prices are falling and the world’s biggest market for the yellow metal is hoping for more shoppers</a> <a href="https://www.businessinsider.in/tech/news/india-blockchain-tech-to-make-sms-more-secure-is-leaving-users-locked-out-of-their-account/articleshow/81409145.cms">India’s blockchain tech to make SMS more secure is leaving users locked out of their accounts — and potentially more at risk</a>

You Searched For "TCS growth 2020" and got 12 results

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Exclusive: TCS CEO shares his hopes and fears from the budget 2020

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TCS, Infosys and HCL Tech will show a good quarter but Wipro’s earnings will outshine them all ⁠— here’s why

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