Global technology spends are expected to continue being upbeat in FY22, CARE Ratings has said in a report.
"Robotics, artificial intelligence, cybersecurity, IoT, among others are expected to be the key technology focus areas in FY22. In FY22, the IT-BPM industry expected to grow by upto 5% YoY to touch USD 205 bn, where domestic market may grow at a higher pace of 6-7% YoY to USD 48 bn and exports may grow by 4-5% YoY to USD 157 bn. - For FY22, hiring is expected to be upbeat, as most players of the Indian IT services industry are expecting a strong deal pipeline despite pressure on discretionary budgets in some of the impacted customer industries. Attrition rates are expected to grow to normal levels after a moderation in FY21, as demand starts improving due to more deal wins which creates a demand for skills in emerging areas," CARE Ratings has said.
Digital transformation initiatives grew manifold during the pandemic, with much greater realization of the need for digitization, the rating agency has said.
"The industry witnessed superior operating margins in FY21 supported by improvement in several cost levers and also due to cost avoidance and deferment. With normalcy returning gradually across the world, we anticipate some of those costs to return and hence operating margins may witness some moderation in H2-FY22 and FY23," it stated.