Sonata Software expects $500 million revenue in next 3 years, mainly on growing data and AI related engagements

Meanwhile, talking about a downward revision guidance by global IT services player EPAM, Lange said, “We have not seen a real slowdown in our pipeline and large deals. Our large deals continue to be about 40 percent of our overall pipeline and our customers continue to invest in the modernisation services that Sonata offers, whether that is business application modernisation, data, modernisation, those types of things. So, from our perspective, it's consistent about the guidance that we have given.”

A downward revision in guidance by global IT services player EPAM, last week, is hurting the IT stocks. EPAM said that clients have become even more cautious with spending and there is some reduction in the order pipeline.

EPAM reported results on May 5, post which it released a mid-quarter update and has further cut its guidance by nearly 5 percent. The street has not taken the guidance cut well as EPAM was known to be a very fast-growing company. Growth in the last two calendar years has been more than 30 percent.

However, EPAM is now expecting revenue to decline by 0.5-3.5 percent in 2023. This is the second time it has cut its guidance in as many months. The new figure is also a stark contrast to the 9 percent-plus growth it had guided for in February this year. It revised that figure to 2.5-3.5 percent in May, before coming out with the latest cut.

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