Is the worst over for IT? Q1 earnings of firms send out growth feelers

Pandemic impact bottomed out in Q1, second half likely to see better growth

The first-quarter (Q1) earnings of leading information technology (IT) services firms give a clear indication that the worst may be over for the industry, and that growth revival is already underway, albeit at a slower pace.
 

Despite revenue contraction on a sequential basis, Tata Consultancy Services (TCS), Infosys, and Wipro won many large deals in the April-June quarter — an indication that tier-I firms have benefited from vendor consolidation, said experts.
 

Also, management commentary of the three IT majors showed that the slowdown is more sector-specific in nature. Key business verticals, such as banking, financial services and insurance (BFSI) and