Indian engineering service providers revenue may decline 3% to 4% in FY21

Indian engineering service industry was on a roll and witnessed double-digit revenue growth in the last few years, whereas the Indian IT and BPO industries grew in single digits.

This year the winning streak will be broken. The $15 billion odd questions is by how much?

How will Indian engineering service providers grow in FY 21? I did estimate a few months back about the growth for four different categories of engineering service provides from -10% to 10%

https://www.linkedin.com/pulse/fy21-engineering-services-growth-expectations-pareekh-jain/

Now nine months’ results are out, and it looks that my estimates were on the higher side. The actual nine-month growth of six large Indian engineering service provider is -5%.

These six service providers cover all four major service provider categories and can be a good sample for the Indian engineering service industry.

All service providers are on a recovery trajectory. Since Q4 will be better than the last nine months, the overall revenue decline of Indian engineering service providers in FY 21 should be about 3 to 4%.

The good news is most service providers are confident of double-digit growth in FY22. Let’s hope FY22 turns out to be a great year for all!