Top 5 reasons why IT Sector is failing | CA Rachana Ranade

"If there are recessionary fears in these countries could they cut back on IT spending? Obviously it's yes. Now if they do that are they going to give lesser contracts to us? Will will there be lesser outsourcing? Yes. And can that hurt the top line as well as bottom line for Indian IT companies? Answer is again yes."

"Infosys they are saying we expect to grow at 1.5% to 3% which is pretty less"

"It is felt that AI can actually replace repetitive coding testing maintenance and support work that forms a large share of Indian IT exports. Even generative AI is advancing enough to handle complex coding architecture and even consulting tasks."

"US and EU clients, they are actually building in-house AI teams which will effectively reduce the outsourcing need itself. So you can imagine rather than outsourcing if they are building that capacity as an in-house capacity is the outsourcing work going to reduce yes."

"this disruption has already started at a crazy pace and it could be felt at a next level in another two to three years. It has already started kicking in but in next two three two to three years I can't even imagine what AI can do."

"Understand stock prices often fall on disruption fears well before the actual revenue declines. So we always see we always say that market sees what could happen in the future and that is why it discounts that point. So market is currently seeing this foreseeing this that because of this AI disruption IT sector can well go down"