Recession expected in IT industry, TCS and Infosys’ performance weak in fourth quarter
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New Delhi : There are chances of recession in the information technology sector (IT industry). In the fourth quarter, the performance of two major IT industry companies TCS and Infosys has been weak. If experts are to be believed, then the trend of weakness in the IT industry will continue for one or two quarters. Only after this there is a possibility of some improvement in the situation. Experts say that with the quarterly results of TCS and Infosys, the two major companies of the IT industry in India, caution is visible in the comments of the management. Especially, both the companies are very cautious about BFSI and technical services in the US market.
The recession of the fourth quarter will have a deep impact
TV Mohandas Pai, former director of Infosys, says that the fourth quarter of FY 2022-23 will be slow for IT companies, but its impact and extent will depend on the profile and strategy of individual companies. Expressing the possibility of less uncertainty in the US market in the April-June quarter, he said that it will take 1-2 quarters for new orders to come. Therefore, the time of October-November is expected to be better.
Iron of top IT companies in the world
Although he said that the Indian IT industry is a major force in the global tech arena in terms of its size, scale and strength, it will reflect the market realities. The IT industry today is a force to be reckoned with with $200 billion in exports and the top five Indian IT companies play a major role in the global market.
Softening in earnings of big IT companies
Pramod Bhasin, founder of Genpact, said that the ‘softness’ in the earnings of large IT companies may be back on track after continuing for a few quarters. He said the earnings softening of large IT firms is likely to continue for a few quarters as several industries, especially technology, have been restructuring and cutting costs quite dramatically. IT expert and chairman of 5F World Forum Ganesh Natarajan said that the biggest customers of Indian IT have been BFSI (banking, financial services and insurance), but growth in the next three-four quarters could be low due to the slowdown in this segment.
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