Muted Q3FY24 in store for IT firms
The signs of improvement in IT spending in the near term remain elusive, with continued scrutiny over discretionary spends, higher-than-usual furloughs and focus on cost optimisation
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Stumbling Blocks
- Weakness in IT services demand further intensified
- Higher-than-expected furloughs in Q3
- q-o-q growth for tier-1 IT services expected in -2.6% and 5% range
- Projecting 1-3% sequential growth for tier-2 players
New Delhi: Indian IT companies are expected to report a soft third quarter with higher-than-usual furloughs weighing on revenue growth, industry watchers said cautioning that demand outlook commentary is likely to be unchanged as clients continue to scrutinise discretionary spends and prioritise cost optimisation.The big earnings week for tech heavyweights is up ahead, with the top tier IT companies slated to announce their December quarter numbers this week.
Tata Consultancy Services (TCS) and Infosys will declare their Q3FY24 report card on January 11 (Thursday) and Wipro and HCL Technologies on January 12 (Friday). All eyes will be on management commentary from the IT pack on prevailing customer sentiments across BFSI, and technology services, as well as demand scenario panning out in key markets of the US and Europe.
