According to IT research firm Ovum, about 40% of IT outsourcing contracts in the Public, financial services and manufacturing sectors have extended beyond expiry dates during the April-June period. Normally, the figure would be 10-20% reported Jens Butler, principal IT analyst at Ovum.

In the economictimes.indiatimes.com article, Jens Butler went on to say reasons for these delays could include "changing scope, position of the buyer in terms of what they're looking for, ongoing negotiations and restructuring".

Providers will feel the effect of these delays and it has reportedly forced Nasdaq-listed Cognizant to cut its full-year revenue growth estimate by 2.5%.

Read the economictimes report here