Investment in new technology is not going away: Mphasis CEO Nitin Rakesh

Nitin Rakesh, CEO of Mphasis, spoke to CNBC-TV18 about the software industry guidance and shared his outlook on the sector.

"If you look at the three quarter track record, we are in the low to mid double digits. Our stated goal is to grow above market and I think we will end the year strong," he said on the sidelines of the Nasscom India Leadership Forum.

"Nasscom gave more data than they normally do, which means they give you a pretty comprehensive survey of what the industry CEOs are looking at. The primary driver is the fact that at a mega trend basis, the secular trend is investment in technology is not going away from every enterprise segment whether you are a bank, insurance company, retailer, manufacturer, your spend on technology is only going up because that has become the primary mode of differentiation, customer engagement, personalisation, analytics all the things put together. Now in that backdrop, I think it is fair to say that we had a pretty decent FY19," he added.

"To me, it looks like the media is wanting a recession. Our clients are not yet there. My view is, I don't think investment in new technology is going away because that has become an existential issue, it is a boardroom conversation, and it is a CEO agenda. What that means is that the pressure on traditional IT will intensify, which means that the pricing pressure, the renewal pressure, the size of the deal, all other things that we have heard over the last two-three years will be as intense as it has been and what that means is you have to have a really differential set of services to be able to sustain that pressure," he said.

Source: CNBC-TV18