Decline in global client spending may put Indian IT sector under stress

The Indian information technology (IT) industry may be in for a rough ride this year, as the overall IT services market is likely to face slowdown pangs, owing to lingering uncertainty on Brexit, apart from rising trade war tensions.

According to a report by global research firm Gartner, though global IT services spending is likely to cross the $1-trillion mark to reach $1.031 trillion, growth rate will slow to 3.8 per cent in 2019, compared to 6.7 per cent last year.

In its earlier report released a quarter ago, Gartner had projected a growth rate of 4.7 per cent in the IT services spending for 2019. Such downward revision in a span of three months reflects the fast-changing dynamics influencing demand in the industry.