Indian IT Sector

Valuations across the sector remain attractive, but Nomura stays selective. It has rolled forward its valuation framework to H1FY28 while maintaining target multiples.

The services sector's contribution to India's economy more than doubled over the last decade, with IT services GVA growing nearly fourfold despite current industry headwinds

At the Business Standard BFSI Insight Summit 2025, Salesforce CEO Arundhati Bhattacharya said customer service remains a major challenge for banks as they strive to balance convenience with security

South Asia Chief Economist Franziska Ohnsorge flags India's low net FDI flows

Platform-based, intellectual property-driven models trigger cases

The Indian IT sector is experiencing subdued growth, with industry guidance and recent results pointing towards a muted outlook for FY26, though a recovery in FY27 is possible with recovery in key export markets and adoption of new technology. According to HSBC Global Research, near-term discretionary spending among clients remains weak, but there are signs of acceleration in the next fiscal year, especially as adoption of artificial intelligence (AI) among enterprises gathers pace. While the near-term demand environment remains soft and unchanged, FY27 is likely to see pick-up in demand driven by recovery in the US macro and increase in demand from IT companies looking to drive enterprise scale AI adoption, HSBC Global Research said. Key indicators show that the Indian IT sector has faced challenges related to global macroeconomic uncertainty, client cost optimisation, and delayed decision-making. Major Indian IT firms such as TCS, Infosys, and HCLTech reported healthy large deal .

The non-tech sector collective continues to hold the majority contributor status (52 per cent), which it took over from the tech sector in October 2022

Accenture's 2-5 per cent growth guidance despite strong bookings highlights subdued IT demand, hitting Indian IT stocks already under pressure from tariffs and visa fees

New US visa fee piles pressure on Indian IT firms, threatening margins and accelerating shift to GCCs, automation, and local hiring

The decision also shows that Mr Trump is becoming more radical with his time in office, not less

The biggest payoff of India's emerging military-industrial complex may be for its IT- and electronics-related skillsets

Experts say Indian IT services must boost R&D, acquisitions, and AI-led innovation to avoid being seen as legacy providers

Most tech professionals are open to new opportunities, but they are increasingly selective about job roles that align with their values regarding purpose, career progression, and physical & emotional well-being, according to a report. In its latest Talent Trends Spotlight on Technology Report, Michael Page said that India's tech professionals are among the most confident and selective globally, driving changes in hiring expectations. As per the survey, which draws insights from nearly 5,000 tech professionals worldwide, including substantial data from the Indian market, 94 per cent of tech professionals are open to new opportunities, they are increasingly selective about job roles. The survey suggested that 39 per cent of tech professionals express the desire to explore international opportunities as their top motivator for switching, followed by 31 per cent seeking better pay hikes and growth prospects. Flexibility becomes non-negotiable for the tech talent in India. Around 26 ...

This could not have come at a worse time because the IT companies are already under pressure for low single-digit growth for two consecutive years due to weak macroeconomic environment

IT stocks rose sharply with Infosys surging 5% on its buyback plan, lifting the Nifty IT index 2.8%, as Fed rate cut speculation and rupee weakness boosted sector sentiment

According to the Nuvama report, the deflationary impulse from tariff-driven global slowdown is likely to hurt domestic cyclicals the most.

Infosys, TCS, and others ride strong European demand, yet analysts say real recovery needs a US rebound in BFSI, retail, and manufacturing sectors

Analysts say possibility of hitting high single-digit revenue growth looks unlikely

So far, Indian professionals working for a limited period in UK contributed to the country's social security funds, but they would not get benefits as they would return once the project is completed

Tech Mahindra will report its earnings for the quarter ended June on July 16, and analysts expect a dip in profit and revenue sequentially