The IT sector is poised for lackluster revenue growth in FY2024’s second quarter, marked by weakened decision-making and a subdued demand environment, largely influenced by a global economic slowdown. Analysts express reservations, predicting only marginal improvement compared to the previous quarter due to ongoing project cancellations. Persistent uncertainties in Europe and the US, including inflation and delayed rate cuts, continue to constrain IT spending. While large cost take-out deals provide some relief, the sector’s growth rate is among the slowest in a decade. Margin recovery is expected in 2Q, but a cautious outlook prevails for the fiscal year as companies consider narrowing down revenue guidance amidst a challenging environment. Nonetheless, optimism exists for improvement in CY24, driven by stalled transformation deals and increased cost takeout initiatives gaining momentum.