DBT Bureau
Bengaluru, 27 September 2024
Accenture’s fourth quarter performance indicates better days ahead for Indian IT services companies like Wipro, Infosys & LTI Mindtree.
Uptick in consulting business apart from green shoots in discretionary spending augur well for the overall IT industry globally.
“The growth in Accenture’s consulting business is a positive sign for Wipro, while the improved growth in CMT, manufacturing, health and public services and technology services is a positive sign for Indian IT services firms. With a potential rise in discretionary spending and an increasing adoption of Gen AI in CY25E, Indian IT companies are well-positioned to reap the benefits,” brokerage firm, Mirae Asset Capital Markets wrote in a note.
The report also said that there is a gradual upswing in the demand environment.
“Strong bookings in managed services and an increasing demand for GenAI will present opportunities for Indian IT services companies,” it added.
Accenture on Thursday posted a strong set of Q4 results, rekindling hopes of recovery in the global IT services industry.
In Q4FY24 (the August-ending quarter), Accenture reported better-than-expected consensus revenue growth of 5% YoY in constant currency (CC) terms at $16.4 billion.
This revenue growth was supported by 7% rise in managed services. Consulting business grew 3% in year-on-year term, which came after five consecutive quarters of decline.
Total new bookings of the global IT firm grew 24% YoY to $20.1bn, led by a strong 41.4% rise in managed services bookings.
“It is worth noting that the deal signings for most of Indian IT services companies also remained strong during the quarter, and we expect many Indian IT services firms are likely to report strong deal TCVs in Q2 of current financial year,” the report said.
Meanwhile, share prices of top Indian IT firms rose on Friday on the back of Accenture’s better performance. At 12.30 PM, Infosys was trading 1.18% up at Rs 1,922.75, while share price of Wipro was hovering at Rs 545.35, up 0.64% in NSE.
