New Delhi, March 22 -- Were you among the optimistic investors hoping for a revenue revival in the Indian information technology (IT) sector in FY25? If yes, then Accenture's Q2FY24 earnings should provide a reality check.

The earnings of Accenture, which follows a September-August financial year, are often seen as an indicator of future performance of large Indian IT companies. And the Q2FY24 earnings bring anything but good news.

Sequential constant currency revenue growth, as expected, was muted in the quarter. But what came as a rude shock was the tightening of clients' IT budgets that forced Accenture to cut its FY24 local currency revenue growth guidance to 1-3% from 2-5%. Accenture sees smaller projects particularly being affecte...