April has brought a significant shift in the technology sector, particularly for IT service providers. Following a mixed performance in the fourth quarter of 2025, the latest findings from BNP Paribas reveal a noticeable decline in deal signings throughout April. This downturn is primarily attributed to an increase in client caution amid ongoing global economic uncertainties, resulting in a slowdown in project approvals and the postponement of several discretionary initiatives.
Decline in Deal Signings
The latest report indicates that deal activity in April 2025 fell short compared to March, reflecting broader global economic concerns. BNP Paribas noted that the three-month rolling sum of deal signings—a crucial indicator of future contract values—also decreased during this period. This signals a potential slowdown in activity for the coming months.
- Key Findings:
- Infosys, IBM, and Cognizant each secured three deals.
- TCS and Accenture followed closely with two deals each.
- LTIMindtree and Atos managed to sign one deal each.
Regional Insights and Sector Performance
In terms of geographical performance, North America maintained stable deal signings month-on-month, although numbers fell short of last year’s metrics. Conversely, Europe experienced a significant decline, which negatively impacted overall deal momentum.
When examining sector performance, the Banking, Financial Services, and Insurance (BFSI) sector emerged as the top performer in April, leading the deal announcements, followed by the Technology sector. The Manufacturing sector held steady, indicating some resilience despite the overall slowdown.
Summary of Deal Wins
- BFSI: 6 deals
- Technology: 4 deals
- Manufacturing: 2 deals
Promising Q4 Results for Tech Firms
Despite the current downturn, the fourth quarter of FY25 showed promising signs for several technology firms. HCLTech reported a remarkable 43% increase in deal wins quarter-on-quarter, while TCS achieved a 20% sequential rise in orders, totaling $12.2 billion. Notably, Infosys secured substantial contracts worth $2.6 billion, and Wipro approached a total contract value of nearly $4 billion.
The Impact of Generative AI
A key theme emerging from the current landscape is the push towards Generative AI. Companies in the tech sector are embracing innovation through strategic collaborations and specialized solutions. BNP Paribas highlighted initiatives such as TCS launching its GenAI and Agentic AI-powered TCS MasterCraft, aimed at modernizing legacy systems. Similarly, HCLTech introduced a suite of Agentic AI solutions in partnership with Google Cloud, while Capgemini and Infosys also rolled out AI-enhanced offerings to improve customer experiences.
In conclusion, while April has posed challenges for IT services, the underlying momentum in sectors like BFSI and continued investment in Generative AI signal potential recovery and future growth opportunities. As companies navigate through this uncertain phase, adaptability and innovation will be key to sustaining momentum in the tech sector.
