BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
We have seen a mild shift in Accenture Plc's tone from aggressive demand for digital transformation to focus on cost-optimisation by clients, across IT services companies in the previous earnings call. The management also cited during their analyst day in April 2022 that 'cost agenda is back as clients try to regain competitiveness in this inflationary environment.'
Macro-economic issues – high inflation, volatile energy prices, supply-chain disruptions, decelerating consumer spend in developed markets – have deteriorated in past three months.
Weak macro has started impacting client spend as seen in:
elongation of deal cycles for software-as-a-service players (Salesforce, ServiceNow, Workday, Hubspot) as tech spends go through further scrutiny amid clients re-assessing their budgets;
Adobe, Hubspot and Salesforce reduced their revenue guidance factoring-in the uncertain demand environment;
Seagate management commentary that certain U.S. cloud service providers are exhibiting more cautious purchasing behaviour; and
deceleration in hyperscalar revenue growth for past two quarters.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
POPULAR