The post-COVID euphoria drove Indian IT valuations to extreme levels, causing local tech giants to trade at a significant premium over Accenture, the global gold standard of IT services. However, a fundamental reality check shows that Accenture has consistently outpaced its Indian peers in long-term dollar earnings growth. With the arrival of generative AI, the industry’s traditional business model faces a structural shock, leaving corporate boards and analysts entirely uncertain about near-term profit margins. As foreign institutional investors continue to reduce their exposure, this analysis breaks down why visualising future growth based on past performance is a dangerous strategy for tech investors today.

Published on July 9, 2026