Key takeaways for Indian IT vendors from third quarter's Morgan Stanley CIO Survey

Morgan Stanley conducted the CIO survey between August 6 and September 6 for the current quarter — the third of the calendar year.

The report has implications for IT companies because it gives an indication of what the budgets are going to be for this year, and likely for the next year

The key takeaways from the MS CIO survey are:

First, negative revisions to the 2022 budgets continue. IT services budgets have come down for the fourth consecutive quarter. For this year, CIOs now look at an expectation that the growth is going to be 2.6 percent, but this compares with 4.6 percent a year ago.

Second, initial expectations for the 2023 budget, that is, next year's budget, also show deceleration. The services growth is now seen at 2.2 percent which compares with a 2.6 percent growth that they were anticipating for this year, which means next year's budget is going to be lower by 40 basis points.