Accenture jitters hit IT; Apple's India push, charted

Time of India

7 hours ago

Accenture jitters hit IT; Apple's India push, charted
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Also in the letter:
Accenture's deal drop rattles Indian IT industry
Financial snapshot:
Revenue rose 8% YoY to $17.7 billion, led by strong performance in consulting and sustained demand from clients in banking, financial services, and insurance (BFSI) clients.
However, outsourcing deal bookings decreased by almost 10%, and the company cut 10,400 jobs, marking its steepest quarterly reduction on record.
While bookings from generative AI increased by $2.15 billion YoY for nine months of FY25, total bookings decreased by $1.75 billion, indicating uneven momentum.
Indian IT stocks reacted sharply:
Shares of Infosys and HCLTech dropped more than 2%, while mid-tier firms like Coforge and Persistent also declined.
Analysts cited weak discretionary spending and continued 'conversion challenges,' with clients hesitant amid macroeconomic uncertainty and shifting tariff dynamics.
India's IT sector, historically driven by outsourcing-led growth, may be facing a structural reset. The rise of generative AI appears increasingly disconnected from traditional large-scale managed services.
Accenture's guidance has highlighted this trend, potentially impacting Q1 FY26 forecasts for Indian IT majors.
The bottom line:
Indian IT firms are actively pitching AI transformation deals to US clients, but the demand pipeline remains varied.
BFSI and healthcare show strong growth, but interest from manufacturing and retail remains subdued.
Analysts suggest that Indian companies need to deepen their capabilities in product-led AI services to stay competitive with China's vertically integrated AI ecosystem.
Timely:
Meet the firms taking a big bite of Apple's India manufacturing pie
Also Read:
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What's next:
PhonePe prepares for $1.5 billion IPO: All you need to know
Key details:
PhonePe is likely to file its draft red herring prospectus (DRHP) by August.
The IPO could value the company at $15 billion, a sharp increase from its last private valuation of $12 billion in 2023.
Kotak Mahindra Capital, JPMorgan Chase, Citigroup and Morgan Stanley are expected to lead the offering.
Tell me more:
China to birth 100 DeepSeeks as AI race with US intensifies
China's AI momentum:
Speaking at the World Economic Forum in Tianjin, Zhu said these tools will 'fundamentally change' China's tech economy.
Bloomberg estimates high-tech's share of GDP rose to 15% in 2024 and could reach 18% by 2026.
DeepSeek's sudden emergence and rise earlier this year stumped global rivals and lifted Chinese tech stocks.
As the US restricts Nvidia chip sales, China is investing in its own chip manufacturing, with Huawei at the forefront.
The broader economy, however, faces headwinds. GDP growth is forecast to slow to 4.5% in 2025, despite a stronger-than-expected 5.4% in Q1.
Doubling down:
WhatsApp blocked on US House devices amid Meta's political heat
What's happening?
Tell me more:
Meta has pushed back against the security concerns. A company spokesperson said the platform offers 'the highest levels of security available with end-to-end encryption.'
Earlier this year, WhatsApp confirmed that certain users on its platform had been targeted by the Israeli spyware firm Paragon Solutions.
'MAGA Mark':
Also read:
IT bellwether Accenture's Q3 results shake up India's $280 billion software exports sector. This and more in today's ETtech Top 5.■ PhonePe IPO details■ China's DeepSeek effect■ WhatsApp's US House banGlobal IT giant Accenture's Q3 results have sparked new worries about the future of outsourcing, unsettling confidence across India's $280 billion software export sector.As ET reported today , Japanese conglomerate SoftBank's recent efforts to acquire Indian BPO and IT services firms, focusing on AI-driven delivery, reflect this evolving strategy.Apple is rapidly expanding its manufacturing presence in India , aiming to reduce its dependence on China and capitalise on government incentives, including the production-linked incentive (PLI) scheme ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees.Interested? Reach out to us at [e-mail] to explore sponsorship opportunities.Digital payments and financial services platform PhonePe is gearing up for an initial public offering (IPO) in 2025 , with plans to raise around $1.5 billion. Here's a closer look at what we know so far.China could see over 100 DeepSeek-level AI breakthroughs in the next 18 months, according to Zhu Min, the former deputy governor of the country's central bank. He credits the acceleration to local talent, policy backing, and a sense of urgency to counter US tech restrictions.Beijing's drive for AI self-sufficiency indicates a deeper goal: to domesticate core infrastructure and speed up sectoral uptake, even as it plays catch-up on foundational models.Meta's popular messaging app, WhatsApp, has been banned on all US House of Representatives-issued devices , according to a memo sent to House staff on Monday.The notice stated that the "Office of Cybersecurity has deemed WhatsApp a high risk to users due to the lack of transparency in how it protects user data, absence of stored data encryption, and potential security risks involved with its use."The ban comes amid mounting internal dissent at Meta, where over 40 employees have voiced their unease about CEO Mark Zuckerberg's growing proximity to President Donald Trump . His pivot has earned Zuck the moniker of 'MAGA Mark' following his appearance on Joe Rogan's podcast and recent outreach to Trump's inner circle.