Shares of Indian software firms plunged Friday after Accenture warned of slower revenue growth, adding to a global tech selloff that has erased nearly 30% of the sector’s market value this year. Tata Consultancy Services fell 6.5% to its lowest level since 2020, while Infosys slipped 8.7%, echoing an 10% drop in its U.S. listings in the last 24 hours.

Accenture’s 20% plunge on Thursday followed its forecast that client budgets will shift away from AI as decision‑making slows amid Middle East tensions and AI disruption. Analysts warn the sector’s classic outsourcing model faces a sustainability test as AI adoption reshapes spending. The NSE Nifty IT Index has dropped more than 32% from its December peak, wiping out over $100 billion in market value.

Indian exporters mirror Accenture’s model, so the warning signals a potential slowdown for firms like NEC Corp. and Bay Current Inc., which also fell. A strategy shift toward mid‑market contracts will heighten competition and pricing pressure, analysts say. Investors now face a clearer picture: the software industry may enter a prolonged period of slower growth, eroding investor confidence for shareholders.