Indian IT Sector’s Fiscal 2026 Outlook Dimmed by Weak US Demand and Trade Tensions

/in /tarafından

India’s information technology (IT) sector, one of the worst-performing industries this year, is unlikely to see a strong recovery in fiscal 2026, according to analysts. The outlook remains uncertain, following recent warnings from Accenture, the world’s largest IT services firm, which cited weak discretionary spending and lackluster demand from its clients.

Accenture’s quarterly report flagged that client budgets remained flat, with little growth in discretionary project spending. The company also noted that global trade tensions, exacerbated by new U.S. tariffs, have further dampened prospects in the United States, a key market for Indian IT firms.

Amit Chandra from HDFC Securities noted that the last few months have heightened uncertainty about the first half of fiscal 2026 and how this will affect the overall recovery rate for the year. As of now, India’s IT index has dropped 15.3%, marking its worst performance since June 2022. Major firms such as TCS, Wipro, Infosys, and HCLTech have seen losses ranging from 11.2% to 18.1% this year.

Analysts from Kotak Institutional Equities warned that a soft recovery in demand and fewer mega deals in fiscal 2025 will result in slower revenue growth in fiscal 2026 for Indian IT companies. The impact of early-stage adoption of generative AI is also expected to present challenges, they added.

Research from Citi and Morgan Stanley forecast modest growth, with Citi estimating 4% revenue growth for IT companies in fiscal 2026, similar to fiscal 2025, and Morgan Stanley highlighting subdued client spending as a key factor limiting growth. However, sectors like banking, financial services, insurance (BFSI), and healthcare have shown some signs of recovery, although many clients are currently in a “wait-and-watch mode,” potentially leading to further reductions in spending.

Accenture’s report also indicated that U.S. clients have delayed or canceled new contracts, partly due to the Trump administration’s policies, which could increase competitive pressures in other segments, despite Indian IT companies having limited exposure to these delays.

French Regulator Orders Eutelsat to Cease Broadcasting Russian Channels

/in /tarafından

French media regulator Arcom has directed satellite provider Eutelsat to stop broadcasting two Russian TV channels, STS and Channel 5, following an investigation that revealed Eutelsat’s commercial agreements were linked to a sanctioned entity. The channels are controlled by Russia’s National Media Group, which has been subject to European sanctions since December 2022.

The decision came after Arcom received multiple requests from non-governmental organizations calling for action against Eutelsat. The regulator stated that, due to the financial resources of National Media Group being frozen, the channels must be removed from distribution. Eutelsat confirmed it would comply with Arcom’s directive and cease broadcasting the channels within the stipulated three-day period.

Eutelsat clarified that National Media Group was not its direct client but that of an intermediary distributor. The channels are transmitted via Eutelsat’s capacity on the Eutelsat 36C satellite, which is operated by Russian Satellite Communications Company (RSCC).

Failure to comply could lead to sanctions, including fines. The regulator also alerted internet providers about non-compliant content, which was subsequently removed. Arcom continues to investigate other channels that may not adhere to sanctions.

China Issues New Regulations on Facial Recognition Technology

/in /tarafından

China’s cyberspace regulator, the Cyberspace Administration of China (CAC), has introduced new regulations governing the use of facial recognition technology, emphasizing that individuals should not be compelled to use facial recognition for identity verification. The move comes in response to growing concerns about data privacy and the widespread deployment of this technology across various sectors.

The new rules, set to take effect in June, stipulate that individuals who do not consent to identity verification via facial recognition should be provided with alternative methods that are reasonable and convenient. This regulation aims to curb practices such as using facial recognition for tasks like hotel check-ins or accessing gated communities, which have become more common in recent years.

The CAC also stresses that companies collecting facial data must obtain explicit consent before processing any information. Although the regulations do not address the use of facial recognition by security authorities, they require that any area where the technology is deployed must display clear signage informing the public.

These regulations are part of broader efforts by China to balance the use of advanced technologies like AI and facial recognition with privacy concerns. Recent surveys have shown widespread public anxiety about the potential misuse of such technology. In response, previous legal measures like the Personal Information Protection Law, which came into effect in November 2021, have mandated stricter controls on the collection and use of personal data.