Accenture’s muted quarterly results indicate near term demand challenges for Indian IT

Accenture’s muted results for Q3FY24 indicate that the IT sector continues to face challenges in the near term. Reacting to Accenture’s results, analysts reported that tech spends are not expected to come back in the near term although they remain optimistic about their long term prospects.

For Indian IT firms, this means a poor demand environment for the next few months. Axis Securities said in its note on Friday, “IT services companies in India are receiving strong deal bookings despite near-term challenges. While we remain optimistic about the long-term prospects of IT services companies in India, near-term challenges may impact their earnings growth momentum.”