Q3 continues to be slow quarter for IT sector due to curtailed spending

Analyst firms are expecting the large-cap IT services firms-TCS, Infosys, HCLTech, Wipro, and LTIMindtree-to clock revenue growth in the range of negative 1.5 per cent to a positive 4.6 per cent

India’s top technology companies will witness a tepid revenue expansion in the third quarter (October – December) of the current financial year (Q3FY24) – along expected lines – on the back of furloughs and no blockbuster deals, even as the momentum gained from Generative AI (GenAI) is likely to take centre stage.

IT services and consulting firm Accenture’s first quarter numbers in FY24 showed a significant pick up in GenAI spending. It signed new bookings to the tune of $450 million in this space, a surge from the $300 million signed in the whole of FY23.

The Street is expecting