Exclusive: The reason why Indian IT is doing well in the pandemic: deals worth $86.2 billion in the market up for grabs!

Despite the disruption caused by the COVID pandemic, leading Indian IT companies have managed to weather the storm well so far, judging by the June earnings and the outlook for the coming quarters. Data analysed and curated for CNBC-TV18 by IT management consulting firm Everest Group reveals 140 large deals worth $86.2 billion is up for grabs. Large deals are outsourcing deals worth $100 million or above.

"Our database has 140 active deals with contract value (TCV) greater than or equal to US$ 100 million, over 80 percent of those are signed from US and Europe;" says Abhishek Singh, Vice President, Everest Group. Indian IT companies have maximum exposure to both geographies.

“Value of the US and Europe deals is a little over $80 billion," Singh said.

As per the Everest group, 51 percent of the deals active are from the digital space. Digital spans across new tech services like big data, analytics, artificial intelligence, virtual reality, to name a few. What this also signifies is the need for digital in the times of the COVID 19 pandemic. Of the 140 deals, only 25 are renewals; the rest are new. In US and Europe, 101 out the 121 deals up from bidding from those regions are new.

The COVID-19 pandemic has impacted sectors like transport, travel, retail (non-essential), hospitality the most and that shows in the break up of the deals that are in the offing. The largest numbers are from the government space with 81 deals, 13 deals are from BFSI, 13 from technology and communications; 7 from healthcare, manufacturing and service providers each; 1 in retail and consumer packaged goods each.

As per Everest Group, 'all major Indian IT players' are in the race for these contracts. So far between January till date, Indian IT players have bagged 4 such large deals valued at about $2.6 billion. Typically, companies like TCS, Infosys, HCL Tech, Wipro are in the race for large deals amongst the big firms, but Tech Mahindra, Mindtree, Cyient, L&T Infotech are also companies that have been ahead in bagging large deals.