Revenue bites: IT firms go aggressive on cost-cutting amid Covid-19 crisis

Travel expenses trimmed and salary hikes put on hold as industry fights slowdown and demand uncertainty

With growth slowing and demand environment uncertainty compounded by the Covid-19 pandemic, Indian information technology (IT) services majors are leaving no stone unturned to ensure their bottom lines remain least affected — at least in the short to medium term.
 

In the quarter just ended, top Indian IT firms, such as Tata Consultancy Services (TCS), Infosys, and Wipro, have signalled taking aggressive cost take-out measures, including reduction in sub-contracting costs, travel expenses, freeze in salary hikes, and holding back variable payments, among others. “We are looking at costs as if our lives depend on it. If one is witnessing revenue