Accenture’s muted Europe growth bad news for Indian IT

BENGALURU: Accenture’s slower growth in Europe in its FY19 could impact leading Indian IT firms, analysts said, as it signalled weaker spending by the region’s banks.

“We believe that continued revenue decline in European regions signals weak spending of European banks — higher risks to TCS given more penetration in Europe BFSI (Banking, Financial Services and Insurance),” Prabhudas Lilladher analyst Aniket Pande said in a note. “We remain cautious on overall demand environment and as US is entering elections with continued uncertainty around trade war, may create headwinds for tech spends of US BFSI,” he said.