5G rollout to spin more revenues for IT firms
Emerging technologies such as 5G and metaverse set to revolutionize earnings dynamics from next financial year onwards
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Bengaluru: Indian IT services companies are likely to see continued rise in contribution of digital revenues with emerging technologies such as 5G and metaverse playing their roles in the next financial year.
According to analysts, while deals in the 5G space have already started trickling; metaverse as a new theme may see some contracts during FY23.
"Many countries are preparing for 5G roll out and India will have 5G during 2023 or soon thereafter. So, 5G is a real strategic discussion and how to leverage it, how to build the technology stack, how to make it 5G ready and many more. So, this is happening here and now. As far as metaverse is concerned, it is going through a bit of hype cycle though there are some early adopters. Currently, enterprises are showing their intent to participate than doing something real," Barnik Chitran Maitra, managing partner & CEO of global consultancy firm Arthur D Little (India and South Asia), told Bizz Buzz.
Indian IT companies are already doubling down their investments in the 5G space with setting up of 5G labs apart from partnering with enterprises. Tata Consultancy Services (TCS) is building of 5G networks in its campuses. Tech Mahindra, which draws a significant ratio of its revenues from telecom segment, also signed up chip maker Arm to set up an Arm 5G lab. It already has a 5G test bed with Rakuten in Tokyo.
Engineering services company L&T Technology Services (LTTS) has already established a 5G lab in Bengaluru and is preparing to launch another lab in Mysuru.
Similarly, most large firms of India including Infosys, HCL Technologies, Tech Mahindra and others have started launching metaverse offerings sensing the business opportunities in this space.
Infosys has launched metaverse foundry that leverages domain and design expertise, platforms and digital accelerators to give enterprises on-demand ability to securely and efficiently create their own metaverse environment. Tech Mahindra recently announced its foray into metaverse with the launch of TechMVerse to provide interactive and immersive experiences to its consumers. Similarly, HCL Technologies is building industry-specific solutions and partnerships to emerge as a leader in the XR technology and metaverse space.
Most large and mid-tier companies currently draw more than half of their revenues from digital technologies with some even drawing a majority of revenues from this segment. With digital transformation happening at a rapid pace, contribution of this segment is likely to grow in coming years.
