Delay in decision making hurting IT companies

BENGALURU | MUMBAI: Clients of IT services providers are delaying decisions on large deals, as they deal with greater economic uncertainty, executives at large IT companies said.
Slower global economic growth caused by the US-China trade war and a delayed Brexit have taken a toll on IT companies, as clients have cut or delayed spending.
Earlier this month, DXC Technology, with about $20.75 billion in revenue, slashed its revenue target by $275 million to $19.5-$19.8 billion, as clients postponed signing new deals.
“We’ve seen additional delays in many large deals that we expected to close during the second quarter and that was particularly in the Americas and the UK,” said Paul Saleh, chief financial officer, DXC.
DXC recently said that about $1 billion in deals had been delayed in the first quarter, of which it had closed about 30% in the second quarter. “Some of the customers are not ready to make decisions. So, we’ve seen 30% (of the deals) move to maybe more than the fourth quarter, and some in the second half than we had originally anticipated…