IT services firms to benefit from Budget’s 5G push

Indian IT services providers including TCS, Infosys, Tech Mahindra and HCL Technologies are expected to benefit hugely from the budget’s thrust on 5G technology, senior executives and industry experts said.

The government’s plan to hold 5G spectrum auctions and roll out services in 2022-23 could lead to a significant jump in real-time engagements and business opportunities for these firms. They are already investing and co-innovating with telecom operators, they said.

Solutions around 5G technology form around 8% of existing engagements for IT services firms globally. Accenture, Capgemini, TCS, HCL Technologies, Tech Mahindra and Infosys are the leading IT companies in this space, according to a report from Everest group.

In addition to commercial 5G engagement, enterprise 5G solutions—where IT firms can participate—will help generate $200 million worth of revenue for communication service providers (CSPs) by 2026 in India, according to tech industry research firm IDC.

Telecom service providers like Bharti Airtel, Reliance Jio and Vodafone Idea (Vi) have set up 5G trial sites in all major metros such as Bengaluru, Kolkata, Mumbai, and Delhi along with smaller cities such as Jamnagar, Ahmedabad, Lucknow, Pune, and Gandhinagar.

IT service providers are increasing collaborations with telecom firms to tap the 5G opportunity. In December, Airtel and TCS announced the successful testing of use cases from TCS’ Neural Manufacturing solutions suite on Airtel’s 5G network. TCS is also exploring solutions with Indian telcos and the government to offer 5G mobile private networks.

As per the IDC telecom services tracker, India is expected to have 600 million 5G connections by 2025. Pehal News