Market analysts expect the local IT services sector to see lower revenue due to the deal driven by the decline in the global IT sector, financial services, and insurance (BFSI) products.
Cloud-based payment and banking solutions provider Volante Technologies and US-based Volante Technologies announced a partnership on Tuesday. As part of the partnership, Volante and HCL will collaborate to develop Volante's cloud payment services and payment solutions for businesses using HCL's technology. As part of the deal, the companies will also build new excellent charging stations in India and Romania.
Industry analysts expect the deal to slow revenue growth for domestic IT services at a time when sales growth of banking, financial services, and insurance (BFSI) products to international IT firms is slowing. BFSI companies account for around 30% of the 10.2 trillion rupees ($12.4 billion) annual revenue of the Indian IT industry. The decline in technology spending in the financial services sector is primarily driven by inflation and macroeconomic concerns in North American and European markets, including the collapse of Silicon Valley Bank and Credit Suisse.
In response to this slowdown, the Mint forecast on April 3 that domestic IT businesses could see mid-single-digit revenue growth in FY24 as other sectors, including healthcare and manufacturing, reduce discretionary investments in IT. However, this may result in shorter, less important IT contracts during the year. It was reported earlier today that rival IT services company Bane Consultancy Services (TCS) has signed a cybersecurity agreement with Bane NOR, the Norwegian central government's railway division.
HCL and Volante said in a joint statement that they are partnering with "some of the world's leading banks." “We sell the combined solution without disclosing any information about the original customer. The two companies did not even suggest a schedule for joint CPU deployment. “The team of multi-regional experts” continued, “Over the next three years their CPUs will be enhanced.