IT services companies in India are betting big on cloud as demand for digital transformation grows
“Cloud is at the core of most transformation initiatives with a significant headroom for growth in the coming years”- Those were the words of Wipro’s executive chairman Rishad Premji. One of India’s top IT services companies, Wipro, said it would invest $1 billion in Wipro FullStride Cloud Services over the next few years.
This thought of the cloud being a powerful transformer is not just Wipro’s alone. Other IT services companies like Infosys and TCS have also said this in their Q2 conference calls.
Infosys, for instance, said that it continued to gain market share with its Cobalt capabilities with more clients adopting it.
IN THE EARNINGS CALL, TCS CEO Rajesh Gopinathan said, “We have plenty of deals this quarter once again and more in the pipeline. Our strong partnerships with the hyper scalers, deep expertise on their platforms, industry-specific solutions, and domain knowledge have helped us gain a share in this space. We built a new cloud-based field service automation solution based on a third-party platform to provide advanced capabilities in intelligent scheduling, dispatching, and mobile workforce management to transform field operations.”
ISG’s principal analyst Mrinal Rai says cloud As-a-Service market growth will be 27% in 1st half of 2022, 30% in Infra-as-a-service with an annual contract value of $22.1 billion, and 20% growth in software-as-a-service with an annual contract value of $7.8 billion.
Rai feels that in the future, this segment will continue to grow. “There is a lot of migration towards Azure, AWS, and Google Cloud GCP. As these hyper-scalers grow and clients want to transition to cloud-based setup, ITes in India will benefit. This will continue. Cloud will not be a separate infrastructure-focused area. Now it is about business. Working from home will require ubiquitous access to data on the cloud. These companies like Wipro, TCS, Infosys, HCL, etc., will grow as hyper-scalers grow. Investments will continue in the cloud,” he told TechEela.
Google’s parent company Alphabet said in its Q2 earnings call that cloud surpassed the $6 billion quarterly revenue mark for the first time. Google’s cloud segment, Google Cloud, revenues were $6.3 billion for the second quarter, up 36%.
Google is one of the widely used cloud systems apart from AWS etc.