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IT services poised for steadier Q3 growth despite seasonality

IT services firms may see steadier Q3 performance as seasonal softness eases and deal momentum strengthens amid mixed demand conditions.
India’s IT sector outlook for Q3 suggests seasonal weakness may ease as deal momentum improves and deferrals decline. Although December is typically softer due to fewer billable days, analysts expect modest sequential growth supported by ramping pipelines and deal wins. Pressure from discretionary spending and geopolitical risks remains, but sequential performance is forecast to be more resilient than in previous cycles.