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While large IT companies are cautious about their prospects for FY14, mid-size companies are confident about growing their business faster than the industry estimates.
Bangalore-based MindTree in its recently concluded fourth quarter results said it was more bullish about its growth prospects in FY14 following a 23 per cent revenue growth in the previous fiscal. “In our survey of top clients, we are optimistic about a pickup in IT spending,” Krishnakumar Natarajan, Managing Director and CEO, MindTree told Business Line . Further, MindTree plans to add 1,700 employees in FY14. This bullishness is shared by others too.
Mumbai-based 8KMiles Software, a cloud computing technology service provider, is planning to add 100 engineers specialising in cloud computing technology in India and the US.
“We expect to grow our business by 50-60 per cent in FY14 due to increasing uptake of Amazon’s cloud computing technology amongst enterprises,” said Suresh Venkatachari, Chairman and CEO, 8KMiles. In the last nine months, the stock of this company, listed on the BSE, has gone up 300 per cent.
KPIT Cummins has forecast that it expects to grow in the range of 14-16 per cent or $465-475 million. This is higher than industry body Nasscom’s estimate of 11-14 per cent for the Indian IT sector.
“The mid-size companies are growing ferociously and their specialisation strategy seems to be paying off,” said Ankita Somani, IT analyst, Angel Broking.
Further, better engagements with clients, faster decision-making and focus on select verticals such as retail, automotive and business areas (such as cloud computing, and social media) have helped these companies grow.
“The goal is to become the leaders in the segments which we have chosen to compete and the kind of deals that we are able to bag,” said Natarajan.
Despite this growth concerns about visas remain (with the impending US immigration Bill that could increase onsite hiring) and higher wages could eat into the margins. “Large companies can absorb costs like this better,” said Somani.
venkatesh.ganesh@thehindu.co.in
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