New Delhi, Oct. 1 -- Large information technology (IT) services companies are likely to have a soft second quarter, while select mid-cap firms may perform better than their larger peers, according to a report by Emkay.

The report said the overall macroeconomic environment remains largely unchanged, with limited signs of improvement or deterioration. Clients continue to remain cautious about technology spending due to economic uncertainty, keeping discretionary spending under pressure.

"Discretionary spending remains restrained, with clients adopting a cautious spending approach amid macro uncertainty," the report said.

The IT services sector is also seeing changes in commercial arrangements, as clients increasingly focus on artificial ...