IT majors face multiple margin issues

Slowing growth, stronger rupee and higher local hiring to pull firms down this financial year

Amid slowing growth and rising protectionism in the key market of America, Indian information technology (IT) companies are facing multiple margin headwinds for the next one year, at least.

Operating margins of most IT companies are closer to their historical lows. The sector has been grappling with structural and cyclical growth issues in recent times. These include the disruption caused by strong rises in client spending on digital technologies such as automation, the internet of things (IOT), cloud and data analytics.

These are very different from the traditional services offered by Indian IT vendors. And, entails smaller deals of lower