【Bengaluru】With Cognizant, which has so far defied the trend of moderate growth in information technology (IT) services sector, projecting lower growth in calendar year (CY) 2016, export-dependant Indian companies have a major reason to worry.
The Nasdaq-listed IT services company on the 8th of February said it expects revenue to grow at 9.9–14.3 per cent, one of its lowest ever, and cautioned about spending cuts by the clients in financial services and healthcare sectors.
It has come as a surprise for many that Cognizant, which was known for best growth among its peers, has given outlook whose lower end trails the overall industry guidance issued by Nasscom. For CY16, Nasscom expects IT services to grow between 10-12 per cent, lower than the previous year.
○TCS reiterates growth momentum in BFS vertical
【Mumbai】Tata Consultancy Services (TCS) on the 10th February in a statement said that all is well in its biggest vertical banking and finance vertical.
The company in a statement to the exchanges said the segment continues to grow and is ahead of its overall performance. The company said it wanted to allay market fears on demand in this vertical.
NASDAQ listed IT services firm Cognizant, which announced its results yesterday, has a soft guidance for the first quarter. The company cited softness in the BFS space due to macroeconomic concerns.
BFS is part of TCS’ BFSI (incl insurance) vertical. Over the last year BFS+I growth has slowed from 14% ccYY in Mar-15 to 10% ccYY- but mainly due to decline in its Diligenta (UK insurance business), said a CLSA report.
Cognizant rings alarm bell for Indian IT services players
TCS reiterates growth momentum in BFS vertical
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