IT services firms struggle to close mega deals

BENGALURU: As clients are still watchful of macroeconomic factors, the near-term demand environment for IT services firms is still challenging and companies are struggling to close mega deals.

Tata Consultancy Services’ (TCS) order book for Q3 stood at $8.1 billion. Its order book in the previous quarter was $11.2 billion. Analysts pointed out the near-term demand environment remains challenging.

Infosys has tweaked FY24 revenue guidance for the third time to 1.5-2% against 1-2.5% it had projected during the September quarter. Its large deal for the quarter stood at $3.2 billion. HCLTech too narrowed its full-year growth guidance. It is going to see 5-5.5% growth guidance against 5-5.5% it projected earlier. CEOs of top IT firms recently said clients are still making conservative investments. Wipro’s large deals TCV for Q3 was over $900 million.