Domestic IT firms may face growth headwinds in second half of 2019

Margins may come under further pressure owing to large scale hiring last year

Indian information technology (IT) service providers are likely to face growth headwinds in the second half of 2019, as concerns over less discretionary spend in the US owing to lower gross domestic product (GDP) growth coupled with uncertainty over Brexit will put a brake on the overall deal flow.

This has already been reflective in slashing of revenue guidance of US tech major Accenture for this year, along with a flattish growth outlook of Cognizant.

Industry body Nasscom on Wednesday decided to scrap the practice of giving growth projection for the IT and ITes industry, starting this year. It cited