IT companies log strong revenue growth outside key North America market
revenue growth in parts of Europe and regional markets — the Middle East & Africa (MEA) and India and Asia Pacific (APAC) — outpacing that in the traditional stronghold of North America, which is experiencing flattening demand.
Currently, for most IT services firms, the North American market contributes 50-60% to the total revenue, followed by Europe at around 30%. The regional markets still constitute a small portion of the total revenue pie.
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Offering CollegeCourseWebsiteIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitIndian School of BusinessISB Product ManagementVisitIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisitHowever, “For the last two quarters, the Middle East and Japan have grown faster than Europe. But before the last two quarters, Europe has grown faster than North America for 10 straight quarters,” said Peter Bendor-Samuel, founder and chief executive of research firm Everest Group.
Sumit Pokharna, vice president and an analyst at Kotak Securities, said US clients, especially in BFSI and retail, are sceptical about making discretionary spending because of high inflation and interest rates. Meanwhile, India, the Middle East and the UK are continuing to see investments in technology. And, though margin realisation is relatively lower in such regions, IT services firms are trying to focus wherever they can see potential growth.
For Tata Consultancy Services, India’s largest IT
