US Tech Giant's AI Goals Turn into Indian IT's Bugbear

A global technology giant's ambitious drive to dominate as an artificial intelligence powerhouse has come to bite Indian information technology outsourcers that rank the company as a priority client.

- Jas Bardia

BENGALURU:

Sonata Software Ltd, which entered Indian IT's $1 billion revenue club last year, recently said it was likely to record lower-than-expected revenue from its "largest client" for the January-March period, its final quarter of 2024-25.

"...we would like to inform you that the revenue estimates for Q4 2024-25 from our largest client are likely to be lower than anticipated, resulting in lower revenue from our international business for the said quarter than previously envisioned during the previous analyst/investor call held on 6 February 2025," Sonata said in a 16 April stock exchange filing.

During Sonata's third-quarter post-earnings call with analysts in February, the management had projected a revenue decline of 3.5% for the March quarter, attributing this to the company's biggest client account in the technology, media and telecommunications sector.