IT services firms brace for another soft quarter

India’s information technology services companies are expected to report another subdued performance for the April-June quarter, as weak discretionary spending, delayed client decision-making and uncertainty around artificial intelligence (AI) continuing to weigh on revenue growth, analysts said.

Mid-tier IT firms are expected to outperform larger peers, supported by large deal ramp-ups and acquisitions, while Tier-I companies are likely to post muted sequential growth, they added. Among large-cap companies, Infosys and Tech Mahindra are expected to perform relatively better.