IT AND TECH COMPANIES SEE RISE IN DIGITAL TRANSFORMATION; 'BEST FOR EMPLOYEES'! - REPORT

Amid the COVID-19 pandemic and crisis, technology services and business process management companies see a sharp rise in digital transformation deals. These deals come as a break through as clients across the world move services online due to the pandemic. 

As per Economic Times report, top companies such as Infosys, Accenture, IBM, TCS, HCL Tech, Wipro, Cognizant, Genpact have seen a surge in digital transformation projects. These companies have seen the back of a speedy shift to digital by businesses which are coupled with fast-tracking of ongoing transformation projects by organisations.

Despite the pandemic and crisis being affected in all sectors, businesses across varied global markets have suddenly realised the need to shift their services and offerings online. Meanwhile, analysts have said IT budgets of organisations would be spent on saving costs and transitioning to online in the next two to four quarters, Economic Times further reported. 

“The pipelines are full of larger digital transformation deals. What is different is that the focus of these deals is now on cost reduction or, put another way, using digital to cut cost,” said Peter Bendor-Samuel, CEO of industry consultancy Everest Group.

Getting into details, IT major Infosys has bagged two large deals in the United States to transform existing business operations. While one was from investment advisor Vanguard, the other came from energy and utility major Con Edison.

“Because of the crisis, many clients are accelerating what they want to do with digital...So, in that sense, we're seeing good discussions on those things and again if you look at Vanguard, I mean it's a perfect example of a massive digital transformation approach that Vanguard have put in place,” Infosys CEO Salil Parekh told ET in a recent interview.

Even, Genpact has seen a rise in deals as many five-year transformation projects have now become 18-month projects, Tiger Tyagarajan, CEO of Genpact, told ET. “We saw a very sharp rise in the number of conversations and activity in our pipeline on digital transformation for our clients in the last few months. This also led to a significant increase in our digital transformation engagements across industry verticals, both with our existing clients and new logos,” he added.

Currently, the demand to move to digital is intense from those companies that figured out where they want to go, said Phil Fersht, chief executive of HfS Research. “With the blockbuster digital deals ($500 million plus), we have (seen) Accenture, IBM, TCS, HCL Tech, Wipro and Cognizant most active,” added Fersht.

Highlighting about the need and importance of digital transformation, Wipro chief executive Thierry Delaporte said that companies who have not invested enough in digital transformation are now realising it was important to drive the agenda on priority.