News

Published: November 25, 2023
Updated: November 25, 2023

Four Major IT Sector players - Persistent systems , Firstsource solutions and Eclerx Services ,Zensar Technologies throw insights on their expected performances in coming months

Persistent Systems: Optimism Amid Incremental Improvement

Persistent Systems sees an improved demand environment, with no major ramp-downs in recent quarters. The company remains confident in its growth prospects, aiming for $2 billion in revenues and a 200bps EBIT margin expansion by FY27. While dealing with furlough impacts, Persistent Systems dismisses the perception of being heavily exposed to discretionary projects, highlighting a focus on cost optimization deals.

eClerx Services: Positive Momentum and Strategic Evaluation

eClerx Services reports growth in two out of three business segments, emphasizing strength in Customer Operations and Financial Markets. With positive momentum in margins, the company revises its guidance and expresses confidence in achieving stable margins in Q3/Q4. The new CEO is evaluating strategic changes to accelerate growth, improve incentives for sales, and enhance capabilities.

Firstsource Solutions: Realignment for Growth Amid Economic Slowdown

Firstsource Solutions, under new leadership, aims for top-quartile industry growth and margin expansion. The CEO, Ritesh Idnani, focuses on execution through cross-selling and upselling, with organizational realignment in progress. The FY24 revenue guidance sees a cut due to a general economic slowdown impacting client volumes. The company adapts its capacity addition in sync with the demand environment.

Zensar Technologies: Structural Changes Amid Unaltered Demand Environment

Zensar Technologies observes no change in the overall demand environment but anticipates an impact on the December quarter due to furloughs. The company is implementing structural changes, emphasizing pyramidization and focusing on making recently hired freshers billable. Despite a higher margin in H1, Zensar Technologies reiterates its mid- teens margin guidance, intending to maintain a buffer for future investments.

Despite challenges such as furloughs and economic slowdown, companies like Persistent Systems, eClerx Services, Firstsource Solutions, and Zensar Technologies demonstrate resilience and strategic adaptability. The industry's commitment to growth, margin expansion, and structural enhancements positions it for a dynamic and transformative future. Accordingly, these strategic moves underscore the sector's determination to navigate challenges and capitalize on emerging opportunities.