The IT industry in India is on a path of recovery but the telecom business segment is he one which is lagging behind after the recession, sources reported.

Major segments like banking, financial services and insurance, manufacturing and retail have resurfaced from the downturn whereas the telecom vertical is far behind, sources added. Biggies like TCS are witnessing downing numbers where third quarter revenues of last year were 17.2%, this year it dropped to 14.2%.

Infosys too shared the revenue fall; it saw a 4.4% drop last fiscal. Other sectors like BFSI and manufacturing sawhigh revenue numbers like 29.67% and 19.6% respectively.

According to sources, US and Europe are the biggest Telecom markets where Indian IT’s outsource work, but the telecom infrastructure in these countries are built out indicating that telecom spends are towards operational expenses, not capital expenditure. The outsourcing therefore by the telecom sector is more of maintenance work as opposed to high value contracts.

The companies that are more involved in the Telecom sector have performed more poorly. For instance Wipro, which has a relatively large telecom exposure, posted the weakest results.

ITVoir  NewsDesk