An inflexion point

IT industry can change fundamentally

For several quarters, the information technology (IT) industry has been cautious, pointing to concerns about margin pressures, slow demand, and a high employee churn. Company after company provided similar careful guidance, and said clients were cutting discretionary IT expenditure, budgeting only for projects with an instant cost-cutting impact or immediately positive revenue implications. The news that Tata Consultancy Services (TCS) and insurer Transamerica have decided to terminate a $2 billion contract due to the challenging macro environment is a pointer that these worries were not unfounded. The deal in question, signed in 2018, involved TCS working with US-based Transamerica to