The information technology services sector is estimated to clock a flat growth of upto 9 percent in the fiscal year 2019-20. The growth will be at par with the 9.1 percent growth achieved by the sector in FY19. The earlier small-scale proof of concept digital projects has started evolving into enterprise level larger implementations coupled with improvement in discretionary spend supporting future growth. The traditional mainstay of banking and financial services will experience some weakness on low interest rates, focus on cost optimization and managing discretionary spending. Indian companies have started to ramp-up on-shore hiring in its largest market of US on visa issuance norms being tightened by restricting the entry-level programmers coupled with increasing compliance and evidence requirements adding to cost pressures. There will be higher consolidation in the industry, especially among the small and mid-size players, owing to margin pressures in the next decade.

(Economic Times)