Companies such as Infosys, Accenture, IBM, Tata Consultancy Services (TCS), HCL Tech, Wipro, Cognizant, Genpact have seen a surge in digital transformation projects on the back of a speedy shift to digital by businesses, coupled with fast-tracking of ongoing transformation projects by organisations.
With the pandemic impacting all aspects of life, businesses across varied global markets have suddenly realised the need to shift their services and offerings online.
Analysts have said IT budgets of organisations would be spent on saving costs and transitioning to online in the next two to four quarters.
“The pipelines are full of larger digital transformation deals. What is different is that the focus of these deals is now on cost reduction or, put another way, using digital to cut cost,” said Peter Bendor-Samuel, chief executive of industry consultancy Everest Group.
Infosys bagged two large deals in the United States to transform existing business operations. While one was from investment advisor Vanguard, the other came from energy and utility major Con Edison.
“Because of the crisis, many clients are accelerating what they want to do with digital…So, in that sense, we’re seeing good discussions on those things and again if you look at Vanguard, I mean it’s a perfect example of a massive digital transformation approach that Vanguard have put in place,” Infosys CEO Salil Parekh told ET in a recent interview.
Genpact has seen a “dramatic compression of time horizons” and many five-year transformation projects have now become 18-month projects, Tiger Tyagarajan, CEO of Genpact, told ET.
“We saw a very sharp rise in the number of conversations and activity in our pipeline on digital transformation for our clients in the last few months. This also led to a significant increase in our digital transformation engagements across industry verticals, both with our existing clients and new logos,” he said.
Clients of Genpact, Infosys and other tech services companies in consumer goods and other sectors have sought services to shift operations online faster during the past three to four months.
The demand to move “straight to digital” is intense from those companies that figured out where they want to go, said Phil Fersht, chief executive of HfS Research.
“With the blockbuster digital deals ($500 million plus), we have (seen) Accenture, IBM, TCS, HCL Tech, Wipro and Cognizant most active,” added Fersht.
Wipro chief executive Thierry Delaporte said recently that companies that have not invested enough in digital transformation are now realising it was important to drive the agenda on priority.