Page 2 - Indian It Sector

IT sector sees muted FY26 growth; recovery likely with AI adoption: Report

The Indian IT sector is experiencing subdued growth, with industry guidance and recent results pointing towards a muted outlook for FY26, though a recovery in FY27 is possible with recovery in key export markets and adoption of new technology. According to HSBC Global Research, near-term discretionary spending among clients remains weak, but there are signs of acceleration in the next fiscal year, especially as adoption of artificial intelligence (AI) among enterprises gathers pace. While the near-term demand environment remains soft and unchanged, FY27 is likely to see pick-up in demand driven by recovery in the US macro and increase in demand from IT companies looking to drive enterprise scale AI adoption, HSBC Global Research said. Key indicators show that the Indian IT sector has faced challenges related to global macroeconomic uncertainty, client cost optimisation, and delayed decision-making. Major Indian IT firms such as TCS, Infosys, and HCLTech reported healthy large deal .

Non-tech sector continues to hire more vs tech sector, says Xpheno

The non-tech sector collective continues to hold the majority contributor status (52 per cent), which it took over from the tech sector in October 2022

Accenture's muted guidance throws light on challenges for Indian IT sector

Accenture's 2-5 per cent growth guidance despite strong bookings highlights subdued IT demand, hitting Indian IT stocks already under pressure from tariffs and visa fees

Trump's H-1B shock: Offshoring likely to get lift, IT cos may take a hit

New US visa fee piles pressure on Indian IT firms, threatening margins and accelerating shift to GCCs, automation, and local hiring

A shock to IT: Indian companies should take the H-1B hit and move on

The decision also shows that Mr Trump is becoming more radical with his time in office, not less

Dividends beyond the battlefield: India's defence push boosts tech skills

The biggest payoff of India's emerging military-industrial complex may be for its IT- and electronics-related skillsets

Reinventing rules of business key to Indian IT companies' valuation

Experts say Indian IT services must boost R&D, acquisitions, and AI-led innovation to avoid being seen as legacy providers

India's tech workforce becomes more discerning; prioritises well-being

Most tech professionals are open to new opportunities, but they are increasingly selective about job roles that align with their values regarding purpose, career progression, and physical & emotional well-being, according to a report. In its latest Talent Trends Spotlight on Technology Report, Michael Page said that India's tech professionals are among the most confident and selective globally, driving changes in hiring expectations. As per the survey, which draws insights from nearly 5,000 tech professionals worldwide, including substantial data from the Indian market, 94 per cent of tech professionals are open to new opportunities, they are increasingly selective about job roles. The survey suggested that 39 per cent of tech professionals express the desire to explore international opportunities as their top motivator for switching, followed by 31 per cent seeking better pay hikes and growth prospects. Flexibility becomes non-negotiable for the tech talent in India. Around 26 ...

US' proposed HIRE law puts Indian IT firms, GCCs in a fix: Experts

This could not have come at a worse time because the IT companies are already under pressure for low single-digit growth for two consecutive years due to weak macroeconomic environment

IT stocks log biggest gain in four months on Infosys buyback, Fed hopes

IT stocks rose sharply with Infosys surging 5% on its buyback plan, lifting the Nifty IT index 2.8%, as Fed rate cut speculation and rupee weakness boosted sector sentiment

Why did Nuvama downgrade BFSI, upgrade IT & Reliance Ind? Find out here

According to the Nuvama report, the deflationary impulse from tariff-driven global slowdown is likely to hurt domestic cyclicals the most.

For India's IT cos, growth in Europe may only be a temporary relief

Infosys, TCS, and others ride strong European demand, yet analysts say real recovery needs a US rebound in BFSI, retail, and manufacturing sectors

FY26 likely to be another slow year for IT companies, say analysts

Analysts say possibility of hitting high single-digit revenue growth looks unlikely

India-UK trade deal: Double contribution pact to smoothen ops for IT cos

So far, Indian professionals working for a limited period in UK contributed to the country's social security funds, but they would not get benefits as they would return once the project is completed

Tech Mahindra Q1 preview: Earnings set to dip QoQ as key segments drag

Tech Mahindra will report its earnings for the quarter ended June on July 16, and analysts expect a dip in profit and revenue sequentially

Global capability centres not packing bags just yet for small-town India

Patchy infra and thin talent pool stall plans to shift beyond metros

India's data centre sector may attract $20-25 bn in next 6 years: Colliers

India's data centre industry has seen investments of nearly USD 15 billion since 2020 and is likely to attract USD 20-25 billion fund over the next six years, on rising demand, according to Colliers. In its latest report, real estate consultant Colliers India mentioned that India's data centre capacity stands at 1,263 MW as of April 2025 across seven major cities, and the capacity is likely to cross 4,500 MW by 2030. The existing data centre real estate footprint stands at 15.9 million sq ft, and this is expected to rise significantly, reaching about 55 million sq ft by 2030. The scale-up in the Indian DC industry has been accompanied by equally impressive investments in the last 5-6 years. The industry has already seen investments to the tune of USD 14.7 billion since the beginning of 2020. These investments have been largely focused on land acquisition, project construction and development, etc," the consultant said. "In the next 5-6 years, amidst massive adoption of cloud ...

Hiring in IT sector expands by 16% in April on AI, cloud push: Report

Hiring in the IT sector grew 16 per cent year-on-year in April, driven by factors such as AI adoption, cloud modernisation, and the continued expansion of Global Capability Centers (GCCs), a report said on Friday. India's IT hiring grew last month, marking a sharp rebound from fluctuations over previous years, the report 'the foundit Insights Tracker (fit)' by jobs platform foundit said. GCCs played a significant role in this hiring growth, contributing over 1,10,000 new tech jobs in FY25, and ramping up demand for roles like data engineering, DevOps, and enterprise architecture, it added. The foundit Insights Tracker is a comprehensive monthly analysis of online job posting activity conducted by foundit.in. The report further said that skill-based hiring continued to dominate, with 62 per cent of IT employers prioritising practical expertise over formal qualifications. Top in-demand domains included AI/ML, cloud computing, cybersecurity, and data analytics, which together accoun

How American accents, artificial intelligence can save India's outsourcing

A softening of accents could help many young people who may not be otherwise considered for international call-center jobs

Transition time: IT services sector to see new winners and losers

American retailers - such as Best Buy, Walmart, and Target - have indicated that higher prices are affecting their sales