IT Services Industry

The IT services industry must innovate more and integrate better into the needs of the national economy

Delayed decision-making, economic uncertainty, and inflation along with demand contraction in some markets are expected to be the major headwinds for the sector

India's Tech Mahindra reported a fall in third-quarter profit on Monday, hurt by higher expenses and a subdued performance by its communications division

India's IT services heavyweights delivered between 14-20 per cent on-year growth in topline for December quarter, as they raised guard on global uncertainties and choppy verticals, but remained hopeful that costs as well as business considerations will drive tech demand. The tech earnings season began with large IT companies -- Tata Consultancy Services (TCS), Infosys, Wipro and HCL Technologies -- declaring their Q3 report card this week, amid analysts' gloomy prognosis around slowdown in advanced economies and fear of geopolitical flare-ups. The industry leaders said they are keeping a close watch on the global economy and cues. Overall, the revenue growth band of the top-tier IT players was pegged at between 14-20 per cent for Q3FY23, compared to the year ago period. Seen sequentially, the topline growth for the large IT pack ranged between three per cent and eight per cent versus previous September quarter. Meanwhile, December-quarter net profit of the top IT deck rose between

The projected spending is $11.6 billion in 2023, the report said

Many employees working from home during the pandemic took up side jobs without the approval of their parent firm

Slow growth rate and execution challenges impact Cognizant Q4 performance

Profit was up sequentially, however; Revenue rose 20.7% YoY and 3.3% QoQ, driven by growth in CME segment and the US market

Brokerage says IT services firms score over cement on key parameters such as return on average capital employed, free cash flow to Ebitda ratio, dividend, and buyback payouts vis-a-vis PAT

FY24 hikes will stay at lower levels than the spike seen in FY22 and 23

The changes come at a time when the industry is seeing demand constraints from its majority market and budgets are under pressure and deals are taking time to close

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The current talent crisis may delay the industry's efforts to move up the value chain by delinking headcount and revenue streams

The margin for India's fourth-largest IT services firm declined 200 basis points over the previous quarter.

Despite a below-expectation showing, IT major expects double-digit growth in FY23

Analysts predict that if a slowdown does happen by 2022-end, the impact will be seen only in second half of FY23

Though companies are saying they are managing supply side constraints by hiring more freshers and by subcontracting, exits is clearly impacting margins and profitability

In a statement, the company announced that the size of its workforce has crossed the 15,000 mark

"There is definitely a skill war, or a talent war going on," said Gurnani

C Vijayakumar speaks about the way forward and the demand scenario for HCL Tech's business