IT sector to experience slowdown in discretionary spending, say analysts

BENGALURU: The IT services sector is likely to witness slowdown in discretionary spending in coming quarters, considering the present global uncertainty and demand environment. These firms were hopeful in the December quarter that there would be a revival in discretionary spending as top CEOs said it is picking up in certain sectors including banking and retail.

But things have changed in the last few weeks due to tariffs and shifts in consumer sentiment, according to analysts. Accenture posted $16.66 billion revenues for the second quarter ended February 2025.