IT services Q3 earnings: Five takeaways from the top companies

16 February 2023

Based on the December quarterly earnings of India’s IT service companies, demand for services is strong, but we can expect a slowdown. The Indian holiday period of the third quarter, which ended in December, is slow, but quarterly results showed strong growth. Most execs expect a slowdown due to delays in decisions, even if demand remains high for cloud and automation.

These companies are seeing strong growth in what is a seasonally weak quarter. Demand growth was strongest in North America and the UK, with Europe growing more moderately. Besides cloud and automation, there was strong demand for cyber security, consulting, and enterprise application services. At the same time, there is continued consolidation by clients towards a smaller number of vendor relationships. 

On the resource side, staff churn is reducing from last year’s heights but is still at over 20%. Things have slowed down on the hiring side – with new hiring cut by 80% or even halted in some cases. This hiring freeze is due to the looming economic slump, with different areas of the economy being affected more than others. Read Forbes India 


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