Indian IT 'attractive' with large deal demand - Kotak Securities

Mphasis

24/03/2023 08:41

** Indian IT services sector is still "attractive" with
demand increasing for large transformational deals, Kotak
Securities said in a note
    ** Accenture  ACN.F  on Thursday lowered annual revenue,
profit forecasts, decided to cut about 2.5% of its workforce, or
19,000 jobs, indicating a fall in IT services spending
    ** Accenture results, outlook commentary indicate spending
on technology modernization continues to hold, despite
deteriorating macro, Kotak said
    ** Discretionary spending has reduced, resulting in lower
demand for standalone consulting and smaller deals - brokerage
    ** Current demand environment favors cos with strength in
types of programs and cost modernization - Kotak
    ** Companies' exposure to impacted
verticals/services/clients will play role in determining growth,
with Wipro  WIPR.NS  vulnerable on exposure to consulting,
analysts said
    ** Exposure to business and financial solutions can impact
growth at Tata Consultancy Services  TCS.NS , Infosys  INFY.NS 
and Mphasis  MBFL.NS  - brokerage
    ** Nifty IT index  .NIFTYIT  rises as much as 1.6% on Friday

 (Reporting by Biplob Kumar Das in Bengaluru)
 ((Biplobkumar.das@thomsonreuters.com))