Biden's executive order may spur 'five-year mega growth' cycle for India's IT sector
India’s $150 billion IT services sector is expected to witness a “five-year mega growth” cycle due to the speed at which American enterprises transform themselves digitally, outsourcing experts told ET, following US President Joe Biden’s executive order last week to increase competition in the US economy.
US businesses will show increased appetite to migrate to the Cloud and adopt technologies such as artificial intelligence (AI) and Internet of things (IoT) in the next few years, leading to increased offshore and onshore outsourcing opportunities for IT services providers.
“The latest direction from the US administration adds to the growing backlog of digital transformation projects in the marketplace. This bodes well for the Indian IT industry and will further accelerate an already hot market for them,” said Peter Bendor-Samuel, chief executive officer of Everest Group, a US-based IT advisory and research firm.
“We believe that the market is at the start of a five-year mega cycle as digital transformation and modernization move into its scaling phase,” Bendor-Samuel added.
The Biden administration’s plan unveiled last Friday to spur growth in the US economy by curbing corporate abuse includes 72 specific initiatives that make it easier for customers to switch banks and take their transaction data with them.
Indian IT firms earn over a third of their revenue from banking and finance customers globally.
The plan also includes mandating an end to excessive contract termination fees charged by internet service providers, allowing the sale of hearing aids over the counter, removing non-compete clauses signed by millions of workers in the country and getting airlines to refund fees to fliers over baggage delays and WiFi issues.
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