Indian IT companies likely staring at slowest growth since start

economictimes.indiatimes.com:

Infosys Technologies Ltd., India’s second-largest IT services company, is likely to report its slowest growth ever based on the current guidance of 1-2.5%, data sourced from brokerage firm BNP Paribas shows.

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For the country’s fourth-largest IT services provider Wipro, growth numbers are down to their FY99 levels.

For Tata Consultancy Services (TCS), India’s No.1 software services exporter, and No.3 HCLTech, the growth this year will be the slowest since the pandemic. TCS had reported 0.8% revenue decline (in cc terms) in FY21 while HCLTech had logged just 1.1% growth--the lowest for both companies.
The industry is seeing a freeze on technology spending over concerns of a recession and a tough macroeconomic situation, which is expected to only worsen due to the West Asia conflict.

“Some of the companies do risk posting their worst growth ever in 2024,” Peter Bender-Samuel, CEO of consultancy firm Everest Group, told ET.

Bender-Samuel said he expects the first half of the year to be tough. This is driven by two factors, he said. The first is that large enterprises need to absorb the huge investments they have made post-Covid in digital technology. “The pullback was going to happen regardless of the economic cycle,” he said.

The second, Bender-Samuel said, is that the macroeconomic situation is difficult with a likely recession next year. “If, in fact, this recession does land, it will further increase the pullback that we have been experiencing