technology

ITC Infotech eyes double-digit growth this year


Mid-tier IT services firm ITC Infotech expects to achieve double-digit growth this fiscal year, on steady uptick in healthcare and hospitality sectors despite the impact of the Covid-19 pandemic.

The company, a wholly owned subsidiary of ITC, said its domain expertise and core solution offering for the hospitality industry have helped it to either “dodge” the debilitating effects of the outbreak or witness lesser impact compared to peers.

The domain knowledge of the hotel industry — being an ITC subsidiary — and services for core reservation system for hotels helped it maintain growth, Sudip Singh, chief executive officer and managing director, ITC Infotech, told ET in an interview. Singh joined the company from Infosys nearly two years ago.

The $350 million IT services company witnessed a 7% growth in the first half of the ongoing financial year.

“During the last two years, we grew at 17% CAGR (compounded annual growth rate). We definitely want to be at the top quartile. Seven months into the year, we are ahead of our target. As we get into the fourth quarter, we will have a double-digit growth,” Singh said “From a topline perspective, we should be in a very healthy place with a lot of momentum to grow.”

The company reported better performance in the hospitality sector business, he said.

“We are not impacted as much by the slowdown in the hospitality sector. No hotel can do away with the reservation system and they cannot squeeze it beyond a point. With the understanding of the core system, we have been able to dodge the impact and use it as an advantage to gain some market share in a few select chains or airlines,” he said.

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ITC Infotech is eyeing more deals in the $10-$25 million range and going ahead with outcome-based solutions as it sees steep competition due to the consolidation of technology services vendors.

The company is focusing on three verticals – manufacturing and CPG, BFSI and healthcare, travel and hospitality – to drive growth.

Analysts said mid-tier IT services companies are keen to offer outcome-based pricing than their larger peers, since not many of them can achieve scale in delivering digital technology led services.

“They are ready to take more risk and are more open to providing outcome-based pricing than larger providers because of their flexibility and nimbleness. Usually, the areas where their services are applied are for a specific core business or unit and there are not many examples of these providers providing digital services at a larger scale,” said Mrinal Rai, principal analyst, ISG.

Singh said ITC Infotech was increasingly offering outcome-based services and reducing the upfront investment by organisations.

The company said it would make “significant investments” to strengthen its differentiated capabilities, including automation and digital workplace solutions across select industries.





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