Despite the recent underperformance by Indian IT on concerns about valuations and peak margins, Goldman Sachs in its report said the demand drivers for the sector are intact.

The brokerage firm believes that cloud companies like Amazon Web Services (AWS), Microsoft Azure, Google Cloud, etc. are expected to see very strong growth. It estimates a 40% plus growth by AWS as well as Microsoft.

The Indian IT companies are technology partners to these cloud companies. So, when these companies do well, it will provide growth to the Indian IT companies as well.

Goldman Sachs also said that the Indian IT companies have been actively reskilling employees in acquiring technology capabilities to cater to the cloud companies.

CNBC-TV18’s Reema Tendulkar gets the highlights of the report.

Watch video for more.

(Edited by : Abhishek Jha)

First Published:Mar 3, 2021 6:26 PM IST