Accenture’s muted Europe growth bad news for Indian IT

Tata Consultancy Services, India’s top IT services exporter, said earlier it would be hit by a restructuring at Deutsche Bank, a key client.

BCCL
BENGALURU: Accenture’s slower growth in Europe in its FY19 could impact leading Indian IT firms, analysts said, as it signalled weaker spending by the region’s banks.

“We believe that continued revenue decline in European regions signals weak spending of European banks — higher risks to TCS given more penetration in Europe BFSI (Banking, Financial Services and Insurance),” Prabhudas Lilladher analyst Aniket Pande said in a note. “We remain cautious on overall demand environment and as US is entering elections with continued uncertainty around trade war, may create headwinds for tech spends of US BFSI,” he said.

Tata Consultancy Services, India’s top IT services exporter, said earlier it would be hit by a restructuring at Deutsche Bank, a key client. “Demand environment remains sanguine. We continue believing that the industry will not materially de-grow from here, although there is some caution on BFS growth,” brokerage Motilal Oswal said.

Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

Related Companies

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+