Analysts see big impact as travel and hospitality firms defer spending in new tech projects as well as bargain for lower prices in existing projects. IT services exporters, especially mid-tier firms, are going to be “hit hard” given their higher exposure to the vertical, analysts said.
“At this point, it is a certainty that the travel and hospitality vertical is going to be hit hard in the next quarter and it’s likely that the effect will last longer. New projects will be cancelled or postponed,” said Peter Bendor-Samuel of US-based advisory Everest Group. Larger IT companies, too, may feel the impact despite minimal revenue from the sector, he added. Mindtree, which provides services to companies such as Marriott and Southwest Airlines, garners nearly 17% of its more than $1 billion revenue from the travel and hospitality sector. Hexaware, too, has significant exposure to the industry.