Brokerages flag AI push, near-term pressure on Indian IT demand after Cognizant's Astreya deal

Cognizant Technology Solutions

30/04/2026 09:36

** Cognizant Technology CTSH.O agrees to buy Astreya, an IT services and technology provider, in a deal ‌valued at around $600 million, the company told Reuters

** Deal highlights continued shift toward AI-led infrastructure services, a segment where Indian IT firms are increasing investments

** Nomura says co's progress in its AI strategy remains strong, with a shift to outcome-based pricing and new commercial models to drive future growth

** Morgan Stanley says commentary from CTSH signals a softer demand environment for Indian IT, with near-term growth likely to remain under pressure

** Notes artificial intelligence may pressure existing revenues, with new growth opportunities taking time to scale

** Flags financial services as a bright spot, while healthcare and communications remain weak, while businesses overall are focusing on cost cuts and workforce restructuring

 (Reporting by Devika Nair in Bengaluru)

 ((Devika.MadhusudhananNair@thomsonreuters.com;))