Accenture, a global outsourcer has been slowing down with their growth in revenue and digital-driven expansion signal, which is a sombre view for the software industry in India that still looks into the likelihood of traditional tech and bigger deals being attained.
The company had predicted a 5%-8% increase in revenue, this past Thursday, in constant currency for the fiscal year that had started in July. A 6.7% growth in order bookings in the preceding year, as well as a 10% increase in the fourth-quarter profit. The revenue guidance in the foregoing years failed to reach stride when it rose 8.5% as a decline in financial services business dampens the prospect.
The uncertainty of growth did not sit well with investors. Shares among other large Indian software exporters also reduced as S&P BSE IT index closed down 0.5%. TCS had lost 1.5%, while Infosys remained the same and Wipro had fallen to 0.3% in Mumbai trading. S&P BSE Sensex was a benchmark but closed down at 0.4%.
Accenture’s growth happened at the time when India’s software exports industry had some hope about belief in the biggest outsourcing market in the world, the U.S. Recently, bigger IT companies like TCS partnered up with U.S. auto companies. Tech Mahindra had also won its largest outsourcing project which is valued at $2 billion forms AT&T.
65% of Accenture’s revenue is earned from cloud computing, AI and such newer technologies, while Indian companies revenue hardly comes up to 30% to 35%.
The global forecast has predicted a 3% to 4% growth in spending on technology this fiscal year, which analysts think will be a hard feat to reach.