![Mega deals paper some cracks for in-turmoil IT firms](https://cdn.magzter.com/Voice and Data/1715351960/articles/zcd6cBHtJ1715765127780/MEGA-DEALS-PAPER-SOME-CRACKS-FOR-INTURMOIL-IT-FIRMS.jpg)
India's USD 254-billion IT services firms saw telecom clients offer a mixed bag through a topsy-turvy FY24. While India's top three IT services firms bagged mega, USD 1 billion-plus digital transformation and tech services deals from domestic and global telecom firms, Tech Mahindra struggled through a year of transformation for the fifth and final large-cap, homegrown IT services firm.
Tech Mahindra's struggle is significant and sets the context for what could play out soon. The latter is India's most prominent tech services provider for the telecommunications industry-raking in USD 2.32 billion from the sector even in a weak year. However, this revenue has come at a cost for the company-its income from telecom clients dropped by USD 330 million through FY24, a 12.1% decline compared to the previous financial year. In comparison, its net revenue declined by 5% to USD 6.27 billion for FY24.
This clearly shows that telecommunications as a sector has underperformed—and threatens to be a weak industry to rely on amid macroeconomic concerns and inflationary pressures. Industry analysts, thus, warn of caution in the telecommunications sector, which could defer their tech spending and cause a dent in the entire IT services economy.
To be sure, telecommunications is a crucial market for India’s top IT services firms to fish for clients. Through FY24, the segment generated USD 8.25 billion in net revenue for the top five IT services firms, declining nearly 3% over FY23. While this decline is not empirically vast, it is crucial given that telecommunications accounts for just over 10% of the net revenue the top five software outsourcers earned last fiscal year.
MEGA DEALS TO THE RESCUE
この記事は Voice and Data の May 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、8,500 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Voice and Data の May 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、8,500 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
![Can US AI copyright law impact Indian policymaking?](https://reseuro.magzter.com/100x125/articles/94/1694801/H_fr5ANgz1715766992228/CAN-US-AI-COPYRIGHT-LAW-IMPACT-INDIAN-POLICYMAKING.jpg)
Can US AI copyright law impact Indian policymaking?
The proposed Act suggests compensating original creators for content that is used to train Gen Al. This can be a good middle ground for many in tech to follow
![Rise of the connected cars](https://reseuro.magzter.com/100x125/articles/94/1694801/HG9_Qst6U1715766876210/RISE-OF-THE-CONNECTED-CARS.jpg)
Rise of the connected cars
Advanced features like 5G, IoT, and AI are reshaping the automotive industry in India, promising enhanced mobility and safety for drivers
![Navigating chaos: Securing trust in digital communication](https://reseuro.magzter.com/100x125/articles/94/1694801/2UsZbtOKm1715766736914/NAVIGATING-CHAOS-SECURING-TRUST-IN-DIGITAL-COMMUNICATION.jpg)
Navigating chaos: Securing trust in digital communication
Amid rising fraud risks, CPaaS tools offer a lifeline. SMS, though vulnerable, remains pivotal for real-time alerts in a chaotic digital landscape
![The silent communication warhorse](https://reseuro.magzter.com/100x125/articles/94/1694801/O6leJ8stD1715766580187/THE-SILENT-COMMUNICATION-WARHORSE.jpg)
The silent communication warhorse
While 5G grabs the headlines, 4G LTE quietly fuels global mobile networks, enabling high-speed Internet and IoT growth with wide adoption and growth potential
![HPE Launches Wi-Fi 7 APs for enhanced connectivity and security](https://reseuro.magzter.com/100x125/articles/94/1694801/UHq6CxPl11715766509918/HPE-LAUNCHES-WIFI-7-APS-FOR-ENHANCED-CONNECTIVITY-AND-SECURITY.jpg)
HPE Launches Wi-Fi 7 APs for enhanced connectivity and security
Hewlett Packard Enterprise launched Wi-Fi 7 access points (APs), boasting up to 30% more wireless traffic capacity than competitors.
![Getting ready for the great Indian switch](https://reseuro.magzter.com/100x125/articles/94/1694801/aXaxOfO0r1715766337944/GETTING-READY-FOR-THE-GREAT-INDIAN-SWITCH.jpg)
Getting ready for the great Indian switch
India's mobile landscape is undergoing a shift: from feature phones to feature-rich, affordable smartphones, driven by consumers' desire for a better user experience
![Net neutrality takes a right turn again](https://reseuro.magzter.com/100x125/articles/94/1694801/CJ6wfj-tI1715766128171/NET-NEUTRALITY-TAKES-A-RIGHT-TURN-AGAIN.jpg)
Net neutrality takes a right turn again
Led by Biden's commitment to protecting the Open Internet, the recent FCC decision has brought the Net Neutrality debate back to the front
![It is time to ghost the AI dating bots](https://reseuro.magzter.com/100x125/articles/94/1694801/a3fkpkCAy1715765978259/IT-IS-TIME-TO-GHOST-THE-AI-DATING-BOTS.jpg)
It is time to ghost the AI dating bots
As mobile apps and AI dating bots surge in popularity, addressing pressing concerns about privacy, data manipulation, and transparency is paramount
![Will voice interfaces ever take off?](https://reseuro.magzter.com/100x125/articles/94/1694801/dix7zBXXB1715765770825/WILL-VOICE-INTERFACES-EVER-TAKE-OFF.jpg)
Will voice interfaces ever take off?
Voice as a primary user interface has shown flickers of promise but has never taken off. Today, with AI at hand, it is still failing to go mainstream
![Mega deals paper some cracks for in-turmoil IT firms](https://reseuro.magzter.com/100x125/articles/94/1694801/zcd6cBHtJ1715765127780/MEGA-DEALS-PAPER-SOME-CRACKS-FOR-INTURMOIL-IT-FIRMS.jpg)
Mega deals paper some cracks for in-turmoil IT firms
Amid the tricky financial year 2023-24, IT firms saw losses in Pack revenue from their telecommunications clients-suggesting that a rejig could be in order