I dont think its right to compare outsourced IT with outsourced Pharma. Once few years back, I also tend to do that and now realize that the business dynamics are extremely different.
I had also written off Indian IT at some point of time because of the low end job they used to do. But the progress they made in digital and having seen the dependency of the Amazon, Google etc on Indian IT for partnering for their digital offerings - Indian IT growth is here to stay.
Tata Elxsi and LTTS are in different league with their niche offerings. I believe the true engineering IT growth and capabilities are not yet known or seen.
Regarding growth in recent quarters - Preponement is one factor and realization of importance of digital is another. Its not that all companies that want to go digital and the extent to which they want to go have all gone in these 3 Quarters - the journey has only begun. Who will capture the benefits of that journey is another question alltogether.
Now coming to corrections in crash - I agree that risk is very much there. There is nothing called as “Margin of Safety”. People just remain in illusion citing the Margin of safety if they buy at lower levels. Today, its all your money so the Margin of safety for someone who bought at 700 is same for someone who bought today as even though the first person who bought at 700 has all his money invested today and is as good as buying today.
Risk of big downsides and upsides remain in Technology companies. Probably thats why I did not allocate bigger percentage to Tata Elxsi and missed on the huge upside risk on a higher allocation.
If the traction in revenue growth and deal wins subdue, I agree the downside risk will come into picture.