Recession fears in US, EU spook IT-BPM firms

IT-Business Process Management services are expected to show some level of recessionary impact on growth in the near- to mid-term as concerns over inflation and recession grow across the United States and Europe, the largest markets for IT services providers such as Tata Consultancy Services (TCS), Infosys and Wipro.

The long-term demand mega cycle is, however, strong, experts said.

IT analyst and advisory firm Everest Group said the IT services industry will grow by 6.7% year-on-year in organic constant currency terms in the 12 months ending March 2023, down from the 10.4% growth in the 12 months ending March 2022. The primary driver of this growth deceleration is the unique growth in the 12 months ending March 2022 which benefited from weak performance in the previous fiscal year.