With discretionary spending still under pressure, the information technology (IT) services industry continued to face an uncertain demand environment in the third quarter of 2025-26 (Q3FY26).
Understanding severance pay isn't just for those who are losing their jobs
The technology major confirmed that a 'low single-digit percentage' of its 270,000 employees would be affected in the fourth quarter of 2025.
India has secured the second position, contributing 36 per cent of the total brand value, a significant achievement fuelled by a 14 per cent increase in brand value, according to Brand Finance 2025 ranking. India follows the US, which maintains its dominant position in IT services brand value, holding 40 per cent of the total brand value.
Indian information-technology (IT) service providers are likely to report another quarter (July-September) of low, single-digit growth owing to macro uncertainties, chiefly emanating from America, with no respite in sight even in the second half of the year.
HCLTech reported flat net income of Rs 4,235 crore in the second quarter of 2025-26 (Q2FY26) compared to last year, even as its revenue was up 10.7 per cent to Rs 31,492 crore helped by financial services and technology business verticals.
Indian-American executive Srini Gopalan has been appointed chief executive officer of telecom operator T-Mobile, amid ongoing debates over H-1B visa policies. Gopalan's appointment, effective from November 1, 2025, comes as US President Donald Trump signed a proclamation imposing a staggering $100,000 fee on new H-1B visas, triggering widespread panic, concern and fear among Indian professionals on work visa.
Stock markets will be driven by RBI's interest rate decision, tariff-related developments, global trends and trading activity of foreign investors in this holiday-shortened week, analysts said.
Global firm Accenture's fourth quarter results prove that the worst is behind for the Indian information technology (IT) sector, said analysts on Friday (September 27). While the pace and the broadness of recovery is debatable, they said Accenture's results and revenue growth guidance for the next financial year (FY25) reduce downside risks for Indian IT companies.
Indian information technology (IT) service providers are expected to deliver low single-digit sequential growth in the first quarter (April-June) of 2025-26 (FY26), even as macroeconomic uncertainties continue to persist due to the volatile geopolitical environment.
IT major Accenture's second straight cut in its revenue growth forecast for FY23 suggests there is more pain ahead for the Indian IT sector, say analysts. Accenture has lowered the top end of its FY23 growth guidance in constant currency (CC) to 9 per cent from 10 per cent earlier. The firm, which follows a September-August fiscal cycle, expects a 2-6 per cent CC growth in Q4 of FY23 (June-August 2023) versus the 6-10 per cent prior guidance.
IT services and consulting firm Accenture will lay off 2.5 per cent or 19,000 employees over a period of the next one and half years, the company said in a regulatory filing. Accenture currently employs over 7 lakh people and is estimated to have the largest employee base of 3 lakh people in India.
Despite a healthy March-May quarter (Q3FY22) show by global IT consulting firm Accenture, Indian IT companies shed up to 3 per cent on the National Stock Exchange (NSE) on Friday as analysts continued to highlight medium-term pain points for the sector. The Nifty IT index settled 0.9 per cent lower on Friday, as against a 0.9 per cent rise in the Nifty50 index. According to analysts at ICICI Securities, Accenture's Q3 saw moderation in year-on-year growth rate across verticals and US regions, which signals at likely normalisation in revenue momentum for Indian IT services going forward.
In India, Accenture said it continues to hire, and as part of its ongoing compensation programs, it also recently recognised a number of its people with bonuses and promotions.
State-owned Engineers India and MECON as well as four private entities are in the fray for the project to comprehensively revamp RBI's currency management infrastructure in order to cater to future cash needs of the country's fast growing economy. The four private entities are: Accenture Solutions; Colliers International (India) Property Services; PricewaterhouseCoopers and The Boston Consulting Group (India).
Cognizant has said it aims to be back among India's top four IT services companies by 2027 by improving revenue, market share, bagging large deals, and gradual margin expansion. The Nasdaq-listed company does a major part of its business in India, but has trailed peers such as Tata Consultancy Services and Accenture over the last few years as growth tapered, margins squeezed, and attrition soared.
Accenture's Q1 FY22 results have sent a wave of cheer among analysts, as the company raised its revenue guidance and said it expects double-digit growth in outsourcing, up from single digit to low double-digit growth expected earlier. Accenture's financial year ends on August 31. The company raised its revenue outlook for FY22 to 19-22 per cent in local currency, up from 12-15 per cent earlier.
Management commentary on demand environment, and forward guidance will be in focus when Indian IT services players declare their September quarter results for financial year 2024-25 (Q2FY25). The industry is exepected to have continued on the path of recovery in Q2, similar to the preceding quarter, rather than sprint towards growth. The top four firms likely grew between 0 per cent and 4 per cent year-on-year (Y-o-Y), according to consensus estimates.
At a time when the market is betting on a 'higher for longer' global interest rate view, Accenture's (ACN) weak revenue forecast is a negative read-through for the Indian IT firms, according to analysts. The Dublin-based company sees its revenue growth at 2-5 per cent in constant currency (cc) for the financial year 2024 (FY24), below the pre-Covid levels of 5-8 per cent for FY17-20. The weak projection, thus, signals that slower demand is likely to persist this year, and any recovery is unlikely in the near-to-medium term, experts note.
Accenture -- considered as one of the top-most employers in India among the global technology services companies -- is believed to have over 150,000 workers in India, next to IBM.
Accenture has entered into a pact with the Massachusetts Institute of Technology to train its employees for individual and professional development.
The acquisition would help Accenture to help lenders and real estate investment trusts streamline their operations, enhance customer experience and improve profitability, a company statement issued in Chennai said.
Consulting and IT services giant Accenture announced two new services - digital and strategy - and key appointments to enhance its position in growth markets like Asia Pacific, Africa and Latin America.
Accenture, one of the leaders in global management consulting, technology services and outsourcing company, on Wednesday launched a training academy, in collaboration with Xavier Labour Relations Institute, Jamshedpur.
Technology outsourcing and consulting firm Accenture Plc on Sunday said it was ending its six-year sponsorship arrangement with golfer Tiger Woods, who is embroiled in a scandal involving extra-marital affairs with numerous women.
The June quarter is usually considered as a seasonally strong period for the IT sector.
Accenture has its largest employee base in India with close to three lakh people.
Global management consulting, technology services and outsourcing firm Accenture and Sun Microsystems on Wednesday announced that they have teamed up to set up an innovation centre in Bangalore for Sun solutions.
The centre of gravity of the technology world is moving to India. This is arguably the biggest certificate ever issued on India's technology strength, given that it comes from Don Rippert, Chief Technology Officer of the $17 billion Accenture.
It might take a little longer for demand to pick up in India's IT outsourcing services industry.
The company is said to be cutting back on recruitment for its consulting and services divisions and postponing expansion as it struggles to cut costs in a worsening global economic climate. Accenture employs around 40,000 people in India.
Fresher hiring, which has been subdued as Indian information technology (IT) services firms scaled back their recruitment, is set for a turnaround. The IT sector's fresher hiring is expected to rise by 20-25 per cent for 2024-25 (FY25). Additionally, the global capability centres are projected to boost their fresher hiring by 40 per cent compared to last year, according to a TeamLease Digital analysis.
Its consulting business clients are pulling back IT spending.
Accenture is taking a leaf out of science fiction movies such as Minority Report and Star Trek. With this aim in mind, engineers in its Bangalore development centre are busy converting these concepts into cutting-edge technology.
The IT sector's fresher hiring is expected to rise by 20% to 25% for 2024-2025. The increase in hiring is driven by a focus on specialised skills catering to segments like AI, machine learning and data analytics.
Global management consulting, technology services and outsourcing company, Accenture has announced a grant of $200,000 to an organisation working for the under-privileged children in developing nations, including India, Nepal, Cambodia and Vietman.
Prime Minister Narendra Modi urged CEOs of US majors to take advantage of India's growth story as the country is making all efforts to become the third largest economy of the world in his third term. India is currently the fifth largest economy of the world after the US, China, Germany and Japan with a GDP of around $3.9 trillion. India has been the fastest growing large economies of the world with GDP growth rate of over 7 per cent for the last three consecutive years.
With the last quarter of 2023-24 (FY24) expected to have been soft owing to lower discretionary spend and macro uncertainty, many are hoping FY25 will be a year of recovery for the information-technology (IT) industry. The fourth quarter, January-March, is considered soft, and will continue to see the headwinds the sector has been facing. And the sector has entered the new financial year on a weak footing. Analysts are expecting Tier-I firms to report sequential growth of -1 per cent to 1.5 per cent and midcap players' growth may range between 0.7 per cent and 4 per cent.
"We will increase our headcount from 37,000 to 50,000 in the next five years and set up more centres. Most of our business would be focused on the third party solutions and a little bit on the captive sector," said Accenture BPO Lead Executive P G Raghuraman. The company is also seeking to tap the BPO industry by securing new acquisitions in the domestic market.
Earlier this year, Mallya's UB Group had acquired 26 per cent stake in low-cost carrier Deccan Aviation for Rs 550 crore (Rs 5.5 billion). The Group has now scaled up its stake in the budget airline to 46 per cent by buying shares in an open offer.
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