Indian IT's digital prowess is gaining rapidly with increase in penetration across portfolio. This is augmented by increased investments in re-skilling, localisation, platforms and partnerships (TCS-Cisco CoE). While the demand environment is stable and deal wins continue to remain strong (TCS-GM, INFY-Toyota, HCLT-Aperam, TechM-AT&T), (1) Tighter cost controls by enterprises/clients and (2) Elevated onsite metrics (localisation, sub-contracting) are imminent growth/margin risks. Recent results and guidance from Accenture highlight (1) Continuity in deal booking strength, (2) Steady growth outlook for CY20, and (3) Challenges in Europe BFS. IT sector growth in 2Q is expected to mildly accelerate (at 2.9/9.1% QoQ/YoY) supported by acquisitions (IBM products, Stater contributing ~35% to sequential growth). Onsite investments, volatility in Fx and higher cost of delivery will casue YoY decline in margin (-162bps). Sequential improvement in operating performance supported by currency, absence of visa cost, offset by wage increase impact (INFY, Wipro, LTI, LTTS, Mindtree, Hexaware, Persistent, Zensar).