The top four IT companies — Tata Consultancy Services, Cognizant, Infosys and Wipro — saw a decline in revenue (in percentage terms) from the US but an increase in revenue from Europe during the December 2017 quarter, when compared with the corresponding period in the previous fiscal.
This is one of the few instances when all the four witnessed such a pattern in earnings during a quarter, said sources. The US is the biggest market for them, followed by Europe.
The decline in revenue from the US happened due to cyclical factors, said Jimit Arora, Partner at research firm Everest Group. Regulatory uncertainties in the US impacted banking and financial services and healthcare (major revenue contributing sectors), while the retail segment is undergoing cost optimisation, he said.
