Worse than expected! JP Morgan paints a grim outlook for Indian IT companies

After a poor fourth quarter show and dismal forecasts for the rest of the year, many analysts have had a negative view on India’s IT sector at least in the near term.

According to JP Morgan’s latest report, the demand for IT services has likely weakened further in June.

“Deferred project starts, project halts and cancellations appear likely to persist. We believe increased competition for a smaller pie could trigger falling win-rates, pricing and deteriorating deal terms,” the global investment bank said.