Business Standard

Margin pressure

Next few quarters will be tough for IT sector

IT Industry, IT, Information Technology, Office, Job

Persistent is looking at large deals from IBM and the central government in the coming quarters

Business Standard Editorial Comment Mumbai
As the rupee trends down, can the IT industry ride high on its overseas income? Or will a combination of rising costs, skill shortages, and the threat of a possible global recession derail growth? The first quarter results and associated management guidance indicate squeezed margins. While companies are confident about “deal-wins”, they all complained about margin pressures and elevated attrition. The Nifty IT index has seen a 30 per cent correction since January 2022, which is much worse than the almost 6 per cent fall in Nifty. In earlier periods, when the rupee had been under pressure, the IT industry

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First Published: Jul 27 2022 | 10:43 PM IST

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