Slow growth bottoming out in IT cos

The second-quarter performance of the top five information-technology services firms gives the hint that slow growth has bottomed out on the back of discretionary spending kicking in for the sector's largest vertical - the banking and financial services.

- SHIVANI SHINDE

However, concern about the macroenvironment continues to be a challenge.

Among the top four - Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro - it is Bengalurubased Infosys that has performed the best and that was evident in its full-year revenue guidance.

For the second consecutive quarter Infosys increased its guidance. It now expects FY25 revenue to grow in the range 3.75-4.5 per cent from the 3-4 per cent stated earlier.

What gives confidence of the turnaround is that all the players have said they are seeing discretionary spend is back in banking, financial services and insurance (BFSI). This is of significance because BFSI is the largest in terms of revenue generation.

In the case of TCS, the largest player in the segment, BFSI has growth across the United States and Europe.