IT Services – Q3 FY 2017 Update – Merisis Advisors

This is the first of our continuing series of newsletters focused on technology services.

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We began our coverage at a very important inflexion point in the world economy. In 2008, the invisible hand of the market, greed, poor regulations etc. were put to blame – a lot of amorphous, complex, nebulous, anonymous causes were collectively & individually blamed without clear understanding. But what is happening now is unequivocally man-made. Brexit and American nationalism/protectionism are here to stay and there’s no going back.At the time of putting together this newsletter, the Trump presidency was only in its first week and we had only speculated how it could impact IT services focusing more on technology. Given the focus on nativism & protectionism, it is possible that the focus of IT services will shift dramatically towards economies and geographies (likely away from the US) due to increasing uncertainties. This could be corroborated from the market sentiments too – on last count, the BSE IT Index had dropped 9% fearing slower growth.

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Unfortunately, technology based development is innovation and this ultimately would affect the growth of the sector when the focus shifts away. Hopefully, (but unlikely) this doomsday-type scenario will not come to see the light of day and IT Services will continue doing well as IT Services is “too-big-to-fail” for India in many ways. On that happy note, we quickly recap the key deals executed in Q2 and Q3 FY 2017.

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Click Here (Google Drive) to download the Q3 FY2017 IT Services Report.