Older IT deals to be 30% smaller, says Infosys COO

Infosys is likely to see initial impact as it increases local hiring in different global markets

Renewals of deals in traditional information technology (IT) services could go down by 30 per cent as clients move budgets to digital and cloud, said Infosys Chief Operating Officer Pravin Rao on Wednesday.

“About 70 per cent of IT budgets are spent on the run side of the business (risk maintenance, infrastructure management, testing), and 30 per cent on the change side,” said Rao. “But the IT budgets have been constant. This means when IT deals are renewed, clients will look at 20-30 per cent cost take out.”

Infosys, the second largest IT services provider in the country, and its peers expect