Sunday, Dec 04, 2022
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Downtime In Tech Town

Downtime In Tech Town

The biggest, TCS, has revised quarterly projections. Others are taking the same route.

Digital Downturn? Photograph by Jagdeesh N.V.

  • Big One: TCS, India’s biggest IT services provider, recently warned of subdued performance, saying growth was slowing
  • Others Too: Biggies Infosys, Wipro, Cognizant and mid-level cos like Mindtree have revised earnings estimates by 6-12%
  • The Split: Brexit is causing problems too, as many UK clients, especially banks, are holding back IT spending

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It was being feared all along, but when earlier this month, India’s largest IT and services company TCS warned of lower earnings in the current year, the spectre of a slowdown loomed over the Indian IT industry. TCS told the Bombay Stock Exchange in a filing that, “Based on data at the end of August 2016, the company has characterised customer outlook as one marked by abundant caution, with some holding back of discretionary spending, particularly in the BFSI (banking, financial services and insurance) vertical in the US, resulting in sequential loss of momentum.” This sent jitters across the IT sector and infotech stocks took a heavy beating.

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