US retailer Macy's tech expense cut likely to hurt Indian IT giants

Macy's is among the first US retailers to announce spending cuts

In a development that may hurt IT companies, US retailer Macy’s has informed its tech vendors of a 10-15 per cent cut in the IT budget for this year amid fears of a recession. The company’s decision may impact new projects, which are likely to get delayed, said sources in the know.

Among the IT players that work with Macy’s are Accenture, Cognizant, Tata Consultancy Services (TCS), and Infosys. Macy’s is among the top 5-10 clients of these companies.

“They (Macy’s) have written to all their vendors that they are doing this to control cost. The discretionary budget will see an impact