US visa norms, technology shift add to IT margin pressure

Software services industry may have to relook its cost structure to maintain a higher margin

The $108 billion Indian IT services industry is bracing for tough times ahead as potential visa restrictions add to their troubles such as a shift towards automation and pressure on margins in traditional services.

Technological disruption and faster-than-expected adoption of technologies like artificial intelligence, robotics and the cloud platform are other major challenges for the industry.

All this is forcing Indian IT companies, which generate over two-thirds of their revenue through exports to the US and Europe, to review their cost structure to maintain higher margins.

The fourth-quarter ISG Index shows record high values for as-a-service offerings and a declining