IT Midcaps Q2: Skill shortage and client woes dragged digital growth

But strong demand environment keeps up hiring

Supply chain issues, higher attrition and client furloughs kept IT Midcaps on their toes in Q2 FY18 despite good deal momentum. While on the hiring front the September quarter has seen good numbers both from large caps and midcaps, the
midcaps have all consistently spoken about how the rush for digital share is straining human resources driving up employee and subcontracting expenses and impacted digital growth.  

The likes of Persistent Systems and Hexaware posted below estimate revenues due to multiple client issues and foreclosure of projects. Despite these hiccups, management and analysts expect the next quarter to look favourable given