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IT companies log strong revenue growth outside key North America market

Economic Times · 6m

Indian IT services exporters are experiencing more revenue growth in Europe and regional markets such as the Middle East & Africa and India and Asia Pacific, compared to North America. The North American market traditionally contributes 50-60% of total revenue for most IT services firms, followed by Europe at around 30%. However, the Middle East and Japan have seen faster growth than Europe in the last two quarters. Factors such as high inflation and interest rates in the US have made clients skeptical about discretionary spending, while India, the Middle East, and the UK continue to invest in technology. Tata Consultancy Services (TCS) has seen significant revenue growth in India and the Middle East, while growth in Continental Europe has slowed. Overall, regional markets are driving growth for IT services firms, with the US and Europe experiencing declines.