BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
IT services companies should see acceleration in structural growth over the medium term as corporates embark on a multi-year cloud-led upgrade cycle. This shift in the business model should lead to a substantial increase (5% revenue versus 3% historically) in the tech budgets of enterprise clients, adding 5–6% incremental growth for the industry.
Growth in the cloud would anchor this phase of technology spending, which would see a mid to high teen growth rate. Along with continued double-digit growth in digital services, this should more than compensate for the decline in traditional services.
We expect Tata Consultancy Services Ltd. to benefit from the sustained growth given its -
strong organic capabilities,
diverse vertical and geographic presence,
deal win momentum, and
strong headcount additions.
With the industry seeing supply-side challenges, TCS has been the industry bellwether in managing these challenges over multiple business cycles.
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