Information Technology – Sector Update – Strong performance underscores constructive outlook for sector
Published on 19 Dec 2025
Accenture’s (ACN: NYSE) organic revenue performance in Q1 was at 4% YoY CC, aided by outsourcing revenues (+7% YoY CC). The outsourcing growth maintains its earlier pace, although limited to certain pockets (BFS and Comms), which is a positive for the Indian peers. The discretionary areas no longer being chased for revival; instead, clients are comfortable spending and deepening partnership with vendors having demonstrated productivity and scale benefits. With advanced AI being the center of focus, the solution-led approach (vs service only) is more pronounced, while fixed price models or outcome-based models are finding more relevance for enterprise clients. Reading for the Indian counterparts, the growth was limited to certain pockets, however, the robust outsourcing bookings (+17% YoY) and strong uptick in GenAI bookings (+80% YoY) are some of the positives. It would benefit the providers having deep capabilities and quality executions at scale.
