Deal-win announcements by IT services companies saw a minor uptick month-on-month(m-o-m) in February 2024, according to a report by BNP Paribas.

Total deal-wins, however, for the month remained low, indicating that enterprises are still cautious on tech spends, the brokerage notes. The three-month rolling average of deal signings dipped m-o-m, given two consecutive months of subdued activity.

A multi-year deal announced by Capgemini (12-year deal with TenneT) was positive. Tata Consultancy Services(TCS), Accenture and Infosys closed the most deals for the month. BFSI and others such as transport, education categories had the most deal wins in February 2024. North America dominated deal-win announcements, followed by Europe and the rest of the world (RoW).

Encouraging for IT

Most deal wins announced were related to digital and technology transformation. The brokerage noted that this is encouraging for the IT industry which has been grappling with cuts in discretionary spends.

February also saw several companies announcing collaborations and setting up different platforms for GenAI. Persistent Systems launched a GenAI platform in collaboration with Microsoft. Wipro launched an enterprise AI ready platform leveraging IBM’s watsonx.

LTIMindtree launched a GenAI-powered autonomous sourcing platform and signed an MOU with Eurolife FFH to set up GenAI and digital hubs. Infosys launched Responsible AI Suite. Cognizant announced the launch of a GenAI platform and Capgemini partnered with Mistral AI. Mphasis launched its GenAI-powered cognitive intelligence platform.

In the previous month, Accenture remained active with three acquisitions (one each in the US, the UK, and Germany) and one investment in Brazil.