US Financial Firm Dropped Big Predicting Bomb On Indian IT!

The journey of the IT sector for the past three years has been a roller coaster ride. Not just in India, the same is the case with the global scenario. COVID-19 left a big impact and the employees were asked to work remotely to stay away from the virus spread.

IT sector employees made the best of it and held multiple jobs which is called moonlighting. The IT giants shocked the employees saying that they cannot hold more than one job. The Indian IT sector which already faced a few shocks is said to be gearing up to face a hammer blow.

American Financial Services Company JPMorgan Chase & Co dropped a big bomb on the Indian IT Sector. The firm said that the IT sector in India will see a tough time in the financial year 2024. However, the sector would recover in the next year.

Talking about the observations, the firm said that by what it had seen in the sector so far, it is predicting that the financial year will be a washed-out year. Unlike the last quarter, the year will not be encouraging for the sector and we remain negative on the sector, the firm said.

"We remain negative on the sector as we haven't seen a meaningful uptick in demand in our recent checks. We think the overall setup is not as positive as last quarter," analysts Ankur Rudra and Bhavik Mehta said

The shocking observations came at a time when there was fear of financial ups and downs. Following this, the majority of clients of the Tech giants reportedly started reducing the amount they spend on IT. With this, the already made contacts between the clients and companies are either getting delayed or canceled.

As if that is not enough, the financial services firm dropped a big bomb saying that the 2024 financial year would be a washed-out one and the sector is likely to collapse. However, the next financial year is expected to be encouraging and will help the sector recover.