Page 6 - It Services Industry
IT majors might disappoint in Sept quarter
The July-September quarter is usually a strong period for India's top information technology (IT) service companies but this one is likely to be different. Analysts estimate the sequential revenue growth on a constant currency basis in that quarter for the top five IT companies at no more than two to three per cent. Further, the expected revival in spending in the key segment of banking, financial services and insurance (BFSI) is also unlikely e soon, affecting revenue growth of the sector in FY18. Analysts are also cautious on the other key segment of retail. Among the top ones, HCL Technologies and Tech Mahindra are expected to lead with constant currency growth of 2.5-2.7 per cent; Wipro is see no more than 0.6 per cent.Analysts at JM Financial say the absence of seasonal growth pick-up in July-September implies the FY18 dollar revenue growth will be muted for most. A relatively softer FY18 organic revenue growth forecast from Accenture of two to 5.5 per cent, against six per cent .
 "IT majors might disappoint in Sept quarter")
Slow IT growth, high talent supply may keep salaries low
At times of slow growth, India has seen number of graduates doubling since 2008 to almost 25 million in 2016
 "Slow IT growth, high talent supply may keep salaries low")