IT Services sector 2025 outlook: CY25 has little in common with CY24, says JM Financial; bets on short duration discretionary deals

As we entered the new year, how is the IT services industry expected to perform in CY25? Per JM Financial, CY25-start has little in common with CY24. Last year this time, the book of business was transitioning from (eroding) discretionary book to efficiency-led work. Per the analysis report by the brokerage firm, leakages have reduced since then and mega deals’ contribution is now in the base. In fact, it added, players now need short duration discretionary deals to pick-up to make up for declining TCV.