Bloomberg Surveillance · Thursday, July 23, 2026
Matthew Bloxham indicates that companies are shifting spending from traditional IT services to AI, as evidenced by muted demand for services from companies like Accenture and Wipro. This reallocation of budgets is also impacting legacy businesses like IBM's mainframe segment, as corporate budgets are not unlimited.
“Yeah, that's right, and I think you to a large degree see that in the IT services space. So if you look at the recent from Accenture and Vist other art services companies, they're still seeing incredibly muted demand for traditional IT services.”
“So there's a clear evidence I think that spending is being shifted to AI away from what has seen perhaps now deprioritized technology transformation projects. And I think that's what we've seen play out with IBM two, is that, Yeah, you know, their mainframe business, which historically had been growing quite well, certainly hit a bit of a brick ball because budgets are not limitless, and companies are realizing that they need to kind of prioritize things and there are the more important parts of the AI stack they have to spend money on.”