Global macro, BFSI risks to weigh on IT revenues

Global macro-economic and financial sector headwinds are set to severely dent FY24 for the Indian IT sector and revenue growth is expected to nearly halve from a year ago, analysts said. The fourth quarter of FY23 itself is expected to be muted due to longer deal cycles, impact on the banking financial services insurance (BFSI) sector and seasonal headwinds, they said. BFSI contributes around 40% to India’s IT services industry revenue.