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Bengaluru: Technology spends across verticals and geographies are expected to rise in the next few months, according to a new report by Edelweiss Research.

The March 2021report reinforces the “techolution" thesis which refers to a technological revolution that will drive spend across the value chain. Covid-19 has been a boon for technology players as it has forced exponential use of apps and platforms, right from online shopping to e-learning to telemedicine.

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There is an acceleration in technology spends, triggered by higher cloud adoption across verticals and geographies; banking, financial services & insurance (BFSI) sector is seeing renewed propensity to spend, also spurred by hyper activity from fintech players; there is also a sharp bounce-back in manufacturing and product engineering services, the report said.

The report projects that there will be almost $1 trillion of additional spends from cloud over the next five-six years. Of this, global sourcing at current rate of 25% should be $250 billion and India’s market share at current rate of 70% should be incremental $175 billion (from current $150 billion exports).

Most chief technology officers (CTOs) have shown extreme urgency to make the first move to cloud, reflected in hyper scalers’ (likes of Google, Amazon Web Services, Microsoft) revenues. However, the second wave of covid-19 has kept implementation slow, leading to a sudden jump in deal award activity for outsourcers, the report said.

“We reiterate, again enthused by emerging and reassuring evidence, that the mega technology upcycle has just gotten underway," the report said.

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