Thursday, April 23, 2009

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Top 4 IT firms continue to face the slowdown heat

Wipro sees a silver lining in Q1; others say recovery by 2009-end. Results for the fourth quarter ended March 31, 2009, and full-year numbers (except for HCL Technologies, which declared its third-quarter results) of the top four information technology (IT) firms reflect the pain the sector has been feeling in the past two quarters due to the global slowdown.

When compared with the trailing (October-December 2008) quarter, only HCL Technologies posted a jump in revenue (of 16 per cent). However, this was primarily due to revenue from the recently acquired Axon group. Wipro saw a dip of nearly 3 per cent in revenue, Infosys a 2.6 per cent decline and Tata Consultancy Services (TCS) a dip of 1.5 per cent (it would have been lower if the estimated $71 million from the recent acquisition of TCS eServe, former Citigroup Global Services, was not added).

The low top-line growth was primarily due to lower rise in volume and lower prices (due to renegotiation), slow decision-making and cut in IT spending by companies.


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