January 21, 2021

Massive Damage Done to India’s IT Sector in Q1 of 2020

Many believed IT firms would prove to be super-resilient in a global crisis such as that in 2020. Not only maintain, but also flourish. However, Indian IT companies faced the full force of business disruption due to pandemic-induced lockdowns.

Massive Damage Done to India’s IT Sector in Q1 of 2020: eAskme
Massive Damage Done to India’s IT Sector in Q1 of 2020: eAskme

Other people are at: How to Work from Home During Coronavirus Quarantine

Analysts predicted that almost everyone in the IT sector would see a 5-10% drop in revenues for the first quarter of the year, due to a massive decline in technology spending.

Growing economic uncertainty made consumers focus on purchasing only essentials.

  • In June, Tata Consultancy, the country’s largest software services firm, announced that it has seen its operating profits fall by 13.8% in the first quarter of 2020.
  • Wipro’s total revenues dropped by 5.3%, while the revenues generated from IT services fell 7.3%. Tech Mahindra reported a fall of 4% in overall revenues for the first three months of this year.
  • Salil Parekh, Infosys’ CEO, believes that the impact should be short-lived, as he is confident that quality companies should be back on track and grow faster in the long term.

He further added – “Energy, financial services, and utilities are relatively less affected.

Retail, travel-hospitality, and manufacturing are those that are suffering most, while hi-tech, communication, healthcare, and life sciences have seen better opportunities.”

Live Games Like Sic Bo May Be an Excellent IT Investment

Most Indian states do not allow gambling, online, or offline. However, Indian players are free to play at offshore sites without fearing prosecution.

The online casino industry is surging, with global annual revenues set to double by 2027, hitting $127 billion.

In April, a report claimed that the Alibaba Group, Tencent Holdings, and SoftBank Group are investing millions in Indian apps, utilizing legal loopholes to offer bettors cash prizes, holidays, and gadgets.

Thus, the Indian iGaming market should explode soon, as interest in unique titles such as the super Sic Bo online game is massive.

Table games are an essential part of the casino experience, and digital platforms focus more on them than land-based establishments, as they provide them in both RNG and live-dealer format.

The first lets you go up against software, while the latter lets you face off against a croupier situated at either an HD studio or a real-world gaming venue.

Roulette and Blackjack tables dominate the market, but there is a lot of room in the industry for providers that offer niche table action, such as Sic Bo.

Tel-Aviv-based provider, Ezugi, grew by offering Andar Bahar and Teen Patti to Indian players in Hindi. Now that the Asian-Pacific market is rising, it seems like an excellent time to invest in Asian-themed live table games.

There is no market saturation, and billions of potential players await the opportunity to play such games of chance.

Tech Sectors That Should Grow in the Coming Years

According to recent statistics, India has about 50,000 startups, of which 9,000 operate in the technology sphere.

The government classifies a startup as a company that’s at least seven years young and has limited operational capital.

As many are starting to think that the Indian economy has seen the worst of the pandemic, investors wonder what IT sectors they should pour money into and help develop.

Once India decided to pivot into becoming a cashless economy, digital banking and accompanying mobile payment apps have begun to take over financial transactions. Amazon, Google, and Facebook have entered the Indian digital payment sphere.

Homegrown companies such as PhonePe and Paytm hold their own, as many believe that there is still plenty of room for expansion.

Even though the automobile industry has been on the decline, analysts think that electric vehicles should boost automobile production.

India’s consumer electronics market should also double in size by 2025, reaching $21.2 billion. So, investing in appliances such as air-conditioners, TVs, and refrigerators should be a priority, as consumer power should grow in rural markets in the coming decade.

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