It Services Industry
Next step for the infotech boom
The IT services industry must innovate more and integrate better into the needs of the national economy
 "Next step for the infotech boom")
Irrational exuberance pulled IT companies down in FY23: NASSCOM chairman
Delayed decision-making, economic uncertainty, and inflation along with demand contraction in some markets are expected to be the major headwinds for the sector
 "Irrational exuberance pulled IT companies down in FY23: NASSCOM chairman")
Tech Mahindra's Q3 profit slides 5.3% as expenses jump on macro challenges
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
 "Tech Mahindra's Q3 profit slides 5.3% as expenses jump on macro challenges")
IT firms see 14-20% topline growth in Q3, raise guard on uncertainties
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
 "IT firms see 14-20% topline growth in Q3, raise guard on uncertainties")
Govts to spend $11.6 billion on tech in 2023, says Gartner report
The projected spending is $11.6 billion in 2023, the report said
 "Govts to spend $11.6 billion on tech in 2023, says Gartner report")
Tech Mahindra to come out with moonlighting policy this month: Report
Many employees working from home during the pandemic took up side jobs without the approval of their parent firm
 "Tech Mahindra to come out with moonlighting policy this month: Report")
Infy may overtake Cognizant on revenue front after a decade, say analysts
Slow growth rate and execution challenges impact Cognizant Q4 performance
 "Infy may overtake Cognizant on revenue front after a decade, say analysts")
Tech Mahindra Q2 net down 4% YoY to Rs 1,285 cr on supply side pressure
Profit was up sequentially, however; Revenue rose 20.7% YoY and 3.3% QoQ, driven by growth in CME segment and the US market
Similar P/E for cement & IT 'extraordinary': Kotak Institutional Equities
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
 "Similar P/E for cement & IT 'extraordinary': Kotak Institutional Equities")
Salary hikes and bonuses start to come down for Indian IT services sector
FY24 hikes will stay at lower levels than the spike seen in FY22 and 23
 "Salary hikes and bonuses start to come down for Indian IT services sector")
TCS changes its hike structure, does away with anniversary hikes
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
 "TCS changes its hike structure, does away with anniversary hikes")
Top headlines: IT services cos' salary costs rise, 5G roll-out to take time
Business Standard brings you the top headlines at this hour
IT industry's 'people' conundrum may delay its revenue growth targets
The current talent crisis may delay the industry's efforts to move up the value chain by delinking headcount and revenue streams
 "IT industry's 'people' conundrum may delay its revenue growth targets")
'Have enough headroom to improve margins going ahead,' says Wipro CFO
The margin for India's fourth-largest IT services firm declined 200 basis points over the previous quarter.
 "'Have enough headroom to improve margins going ahead,' says Wipro CFO")
Wipro's Q1 net profit declines 21% over acquisitions, talent cost
Despite a below-expectation showing, IT major expects double-digit growth in FY23
 "Wipro's Q1 net profit declines 21% over acquisitions, talent cost")
IT analysts in wait-and-watch mode as experts see mild recession in the US
Analysts predict that if a slowdown does happen by 2022-end, the impact will be seen only in second half of FY23
 "IT analysts in wait-and-watch mode as experts see mild recession in the US")
Attrition continues to hound IT bellwethers 5-6 quarters down the line
Though companies are saying they are managing supply side constraints by hiring more freshers and by subcontracting, exits is clearly impacting margins and profitability
 "Attrition continues to hound IT bellwethers 5-6 quarters down the line")
Nagarro to expand global workforce by 4,500 in coming months
In a statement, the company announced that the size of its workforce has crossed the 15,000 mark
 "Nagarro to expand global workforce by 4,500 in coming months")
We will try to be among top 3 IT services firms: Tech Mahindra's CP Gurnani
"There is definitely a skill war, or a talent war going on," said Gurnani
 "We will try to be among top 3 IT services firms: Tech Mahindra's CP Gurnani")
Not looking at big-bang buys, just small tuck-ins: HCL Tech MD & CEO
C Vijayakumar speaks about the way forward and the demand scenario for HCL Tech's business
 "Not looking at big-bang buys, just small tuck-ins: HCL Tech MD & CEO")
