Shares of IT service providers opened with a drag of up to 4 per cent on Friday, March 22, after Dublin-based multinational IT services company Accenture slashed its revenue forecast for the fiscal year 2024 amid increasing economic uncertainty. On Thursday, the IT bellwether revised its revenue forecast lower to 1-3 per cent from the earlier 2–5 per cent.
“The firm has been grappling with sluggish demand for its IT and consulting services as high-interest rates slam the brakes on an industry that benefited from breakneck growth during the pandemic,” said the Reuters report.
As the IT services company sees the full-year growth to fall in the range of 1-3 per cent, Infosys ADR (American depository receipt) as well as Wipro ADR both fell by 3.8 per cent and 1.8 per cent, respectively.
Earlier, also the tech giant reduced its revenue forecast in September to 2-5 per cent as against the earlier 4.6 per cent. However, the the June ended quarter of fiscal year 2024, the company retained its revenue growth outlook at 2-5 per cent in local currency terms.
The company expects the client’s spending to take a hit in the consulting services space. Furthermore, in its backdrop, concerns are emerging with respect to revival of Indian IT companies.
