Information Technology Business Process Management (IT-BPM) deals are seen shifting towards cost-cutting measures according to NV Tyagarajan, chief executive officer (CEO) of global professional services firm Genpact.
In an report by Economic Times India, Tyagarajan noted that around “two-thirds of deal conversations with clients now are related to reducing costs amid macroeconomic uncertainties, which is a complete contrast to the situation in the last three years.”
“If I now look at our demand view today versus 12 months back, one of the biggest changes that has happened is many of our clients and their industries are worried about a slowing world in terms of growth,” he said.
Tyagarajan said that Genpact’s clients are looking into the possible impact of inflation.
The company wasn’t surprised and had proactively advised clients to look at costs due to the agile nature of the software business, he added.
He also said that large deals are being broken into smaller projects. This is a familiar trend that has been seen during the financial crisis of 2008 and during the pandemic in 2020.
Genpact projects that its data-tech-AI (artificial intelligence) segment, which accounts for 45% of total revenue, will continue to grow in the mid- to high-teen levels in the next five years.
“If you look at data tech AI, that is where the digital transformation and the cloud journeys, the need of clients for accessing data to build insights to better prediction engines and aid in taking better decisions (happen),” he said.