Indian IT firms boost R&D but trail global tech giants
Indian IT companies like Infosys and TCS are putting more money into research and development this year, but they're still not catching up to global tech giants.
While their investments are growing, they're nowhere near what companies like Microsoft, IBM, and Accenture are spending.
Infosys and TCS increase R&D
Infosys bumped its R&D spend to ₹1,093 crore (0.73% of revenue), up from last year's ₹850 crore.
TCS increased its standalone R&D budget to ₹2,814 crore (1.3% of turnover), with a consolidated total hitting ₹2,900 crore.
LTM also saw a jump in R&D spending to ₹122.1 crore.
Microsoft, IBM, Accenture outspend Indian firms
Meanwhile, Microsoft poured $32.5 billion (12% of revenue) into R&D last year, way ahead of Indian firms.
IBM spent $8.3 billion and Accenture invested $800 million too.
Praveen Joshi from RSK Business Solutions points out that for Indian IT companies to stay competitive, they need to focus on areas like AI, cloud modernization, and cybersecurity.