Three stocks that could defy the IT slowdown

L&T Tech Services, Cyient and Tata Elxsi have exposure to the fast-growing engineering R&D space

At a time when the larger software services firms are facing multiple headwinds, thanks to digitisation as well as rising protectionism, niche information technology (IT) companies offering engineering research and development (ER&D) services are in a sweet spot. 

Indian IT companies have grown at a rapid pace of 15 per cent in the ER&D space over the last five years and this segment is largely unaffected by the disruption caused by digitisation. 

“Mid-cap companies focused on specialising either on the digital side or in product engineering are more of a partner to their clients and are better placed than larger