Accenture’s mixed set of earnings numbers and its subdued guidance for the next year sent the American Depository Receipts of Infosys and Wipro tumbling by as much as 3% in overnight US trading. The results of the Dublin-based IT company, which has a large percentage of its workforce in India, may indicate how Indian rivals such as Infosys and Tata Consultancy Service are likely to shape up.
According to Everest Group CEO Peter Bendor-Samuel, there is a heavy component of weak market sentiment playing in Accenture’s forward-looking commentary. “Accenture is seeing clients being worried about global macro while considering spending decisions. Indian firms are experiencing the same market pressures of significantly diminished discretionary spend and reluctance to commit to new significant initiatives,” he said.