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M&S Cyberattack Traced to Third-Party Breach, Online Sales Disrupted Until July

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Marks & Spencer (M&S) confirmed on Wednesday that a recent cyberattack which disrupted its operations originated from a security breach at a third-party contractor, not from within its own IT systems. The attack, first disclosed on April 22, will continue to impact the British retailer’s operations for several more weeks, including a halt to online sales expected to last until July.

In a briefing with reporters, CEO Stuart Machin said hackers used social engineering tactics to infiltrate a contractor’s network, bypassing M&S’s internal digital defences.

“Unable to get into our systems by breaking through our digital defences, the attackers did try another route… entering through a third party rather than a system weakness,” Machin explained.
“Once access was gained, they used highly sophisticated techniques as part of the attack.”

Involvement of Tata Consultancy Services

M&S holds a long-standing IT contract with Tata Consultancy Services (TCS), and a source familiar with the investigation told Reuters that TCS may have been the access point exploited in the breach. TCS declined to comment, and Machin did not confirm whether TCS was the contractor in question.

Timeline and Response

Suspicious activity was first detected over the Easter weekend (April 19–20). According to Machin, the time from breach to detection was relatively short, particularly compared to the industry average of 10 days or more.
Immediately after discovering the breach, M&S involved cybersecurity experts, law enforcement, and government agencies.

So far, 600 systems have been scanned, and the process of gradually bringing them back online is underway.

Online Sales and Business Impact

M&S’s online retail operations remain suspended, and the company does not expect full functionality to resume before July. The company has not disclosed whether a ransom demand was issued, citing official advice.

The UK’s National Crime Agency is investigating the attack, reportedly focusing on a group of young, English-speaking hackers.

Despite having boosted its tech spending threefold over the past three years, Machin stressed that no organization is immune to cyber threats.

M&S generates nearly £14 billion ($19 billion) in annual sales, and the breach marks a major disruption for one of Britain’s most recognized retail brands.

GenAI to Boost India’s IT Industry Productivity by Up to 45%, EY India Survey Reveals

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Generative artificial intelligence (GenAI) is poised to significantly boost the productivity of India’s $254 billion IT industry, with a projected increase of 43% to 45% over the next five years, according to a survey conducted by consulting firm EY India. This surge in productivity will stem from the dual impact of GenAI’s internal integration within IT companies and the growing shift of client projects from proof of concept (POC) to full-scale production.

Leading Indian IT firms, such as Tata Consultancy Services (TCS) and Infosys, have noted that their clients are increasingly using AI for new projects. EY India’s survey found that 89% of these companies have already begun experimenting with GenAI, with 33% of these projects already in production. Abhinav Johri, a technology consulting partner at EY India, emphasized that businesses are transitioning from experimenting with AI to adopting it at an enterprise-wide scale, showcasing the industry’s confidence in the technology’s potential.

The survey also highlighted specific roles within the IT industry that stand to benefit the most. Software development is expected to experience the largest productivity boost of approximately 60%, followed by BPO services with a 52% increase, and IT consulting at 47%. Together, these three sectors—software development, BPO services, and IT consulting—are expected to contribute to 50%-60% of the total productivity improvement across India’s tech services industry.

The integration of AI is not only helping IT firms enhance their customer service but is also contributing to cost reduction and improved revenue growth, as reported by the survey’s respondents.

HCLTech Misses Q3 Revenue Estimate, Tightens Full-Year Forecast

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India’s third-largest software company, HCLTech, reported a smaller-than-expected revenue for the December quarter and revised its full-year growth forecast downwards. Despite an increase in demand anticipated for fiscal 2025, underperformance in its software business led to the company narrowing its revenue growth prediction.

Revenue and Forecast Adjustments

HCLTech’s consolidated revenue for Q3 rose by 5.1%, reaching 298.9 billion rupees ($3.45 billion), but this fell short of analysts’ expectations, which were pegged at 300.68 billion rupees. As a result, the company tightened its full-year revenue growth forecast for fiscal 2025 to 4.5%-5%, down from a previous range of 3.5%-5%. The revision reflects the completion of an acquisition of certain intellectual property (IP) assets from U.S.-based HP Enterprise last month.

Challenges in Software Business

The company’s software vertical, which constitutes 11% of total revenue, underperformed expectations. However, CEO C Vijayakumar noted an improvement in the demand environment, especially in discretionary spending, which is expected to pick up in 2025. He emphasized that clients are looking to increase their IT investments in the coming year, providing some optimism for future growth.

Profit and Deal Wins

Despite the revenue miss, HCLTech reported a 5.5% increase in net profit, which reached 45.91 billion rupees, slightly above analysts’ expectations of 45.82 billion rupees. The company also secured new deal wins worth $2.1 billion in Q3, a solid result despite a slight decline from the previous quarter ($2.22 billion) and a year-over-year increase from $1.93 billion.

Industry Outlook and Comparison

HCLTech is not alone in facing challenges in India’s tech industry, which has been experiencing slower growth due to inflationary pressures and macroeconomic uncertainty. Analysts expect U.S. President-elect Trump’s pro-business policies to benefit Indian IT firms, as the North American market accounts for a significant portion of the sector’s revenue.

Shares of market leader Tata Consultancy Services (TCS) surged 5.6% last Friday after signaling a possible demand revival, even though it missed Q3 estimates. HCLTech’s stock closed 0.3% lower ahead of its earnings report. Other major Indian IT companies, including Wipro and Infosys, are expected to release their quarterly results later this week.