Page 6 - It Sector

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

$100K H-1B visa fees add to TCS' woes; firm second-biggest beneficiary

Tata Consultancy Services could be among the worst hit by Trump's new visa fee targeting foreign tech workers

What is US HIRE legislation and what it means for Indian tech sector

The US HIRE Act plans a 25 per cent tax on outsourcing payments by American firms, aiming to boost local jobs; the move could raise costs for companies relying on Indian IT and service providers

Cognizant to roll out pay hikes for 80% employees from November 1

The pay hikes for consistent high performers is likely to be in higher single digits in India, whereas top performers are expected to get the highest raise

TCS layoffs signal AI-driven transformation in $283 bn outsourcing sector

TCS and its peers Infosys, HCLTech, Tech Mahindra, Wipro, LTIMindtree, and Cognizant collectively employ over 430,000 workers with 13 to 25 years of experience

IT sector braces for slower growth trajectory as US tariff tensions mount

Sectors such as automobile, manufacturing, and retail are already bearing the brunt of tariffs - this was called out by IT executives during their earnings conferences last month

Cognizant undecided on salary hikes, plans rollout for most by year-end

Facing global uncertainty, Cognizant delays salary hike decision and targets second-half rollout while continuing to hire freshers and expand AI-driven roles

Trump tariffs to hit exports; 7% upside in Nifty till Dec '25: Satish Menon

Markets are currently concerned about weak Q1 earnings and a faltering trade deal discussion between the US and India, Menon said, which may severely impact domestic exports

US tariffs may hit India's IT sector indirectly via tech spend cuts: EY

Though the Indian IT services sector is not directly hit by the newly-announced 25 per cent US tariffs on goods, the ripple effects could be "substantial" as rising input costs may prompt US companies to scale back discretionary tech spends, Nitin Bhatt, Technology Sector Leader at EY India said on Thursday. The tariff announcement comes at a time when the export-led Indian IT industry is grappling with macroeconomic uncertainties and the advent of Artificial Intelligence (AI). "While the Indian IT services sector isn't directly hit by the newly announced 25 per cent US tariffs, the ripple effects could be substantial. Rising input costs may prompt US companies to scale back discretionary tech spending. Simultaneously, growing unease around workforce mobility and evolving digital taxation frameworks could redefine how cross-border services are priced and delivered," Bhatt said. Companies that pivot to hybrid delivery models, diversify geographically, and embed AI at scale will be ..

Tech sector at inflection point, workforce rationalisation likely: Nasscom

With country's largest IT services firm TCS laying off over 12,000 employees, industry body Nasscom on Monday said some "transitions" and "workforce rationalisation" are expected in near term as organisations shift toward product-aligned delivery models in response to increasing client demands for agility, innovation, and speed. Tata Consultancy Services (TCS) has said it will lay off more than 12,000 employees, or 2 per cent of its global workforce, this year, as part of a broader strategy to become a "future-ready organisation". The impact will be felt most in the middle and senior grades. Without directly mentioning TCS, Nasscom, in a statement titled "workforce realignment and industry transformation", highlighted that the tech industry is currently at an inflection point, with AI and automation becoming central to business operations. "Over the next several months, we anticipate some transitions as organisations pivot toward product-aligned delivery models, driven by rising ...

IT major Infosys raises growth guidance, buoyed by strong deal pipeline

Backed by $3.8 bn in deal wins, Infosys raised the lower end of its FY25 guidance to 1% as Q1 profit rose 8.7% and revenue grew across financial and manufacturing verticals

India's top IT firms have more than 250,000 highly skilled AI employees

Tata Consultancy Services (TCS) has about 114,000 people with higher order AI skills, which the company believes will allow it to create a 'skills pyramid'

Motilal Oswal sector of the week: IT services; check stock picks, targets

Growth trends across the India IT sector continue to diverge. While Tier-I companies are likely to post flat to marginal constant currency revenue movement, mid-tier firms are expected to outperform.

Analysts bullish on FMCG, IT ETFs amid sectoral rebound; check details

FMCG sector seems to have bottomed out as many largecap FMCG stocks have turned bullish on the short term charts

Changing skill demands: Era of big bench strength at IT firms may be over

Companies such as Infosys, Wipro, Cognizant, and Tech Mahindra have maintained their IT utilisation rates at around 85 per cent over the past couple of years

Cognizant to invest ₹1,500 cr in Andhra, pledges to create 8,000 jobs

Andhra Pradesh Information Technology Minister Nara Lokesh on Wednesday said that IT major Cognizant will set up a major campus here with an over Rs 1,500 crore investment, creating 8,000 jobs in three phases on a 22-acre site at Kapuluppada IT Hills. Lokesh said the government approved the project to position Andhra Pradesh as a global technology hub and promote digital skilling in tier-2 cities. "We welcome Cognizant to Vizag. This investment will accelerate regional growth and future-ready workforce development," said Lokesh in a release. Cognizant's presence is expected to boost the regional digital economy, enhance tech skills, and benefit from Andhra Pradesh's infrastructure, business-friendly policies, and IT and Information Technology Enabled Services (ITES) sectors support, said the minister. Cognizant will begin operations by early 2026 from a temporary facility for 800 staff until Phase-I of the permanent campus is ready by early 2029, said the release. "We are proud t

New talent war: How AI is pushing the boundaries in the IT sector

The requirements for AI professionals have evolved beyond technical skills, with employers also looking for professionals with the ability to work across sectors and identify commercial opportunities

12-hour work shift in IT? Karnataka govt faces backlash over proposal

Employee unions have strongly opposed the extension of hours to 12 from 10, meanwhile, the internet has been flooded with memes on Narayan Murthy

India's IT/ITes sector flexi workforce to reach 900K by 2030: Careernet

With India's IT and ITeS sector embracing flexible staffing as a core workforce strategy, a report on Wednesday revealed that the gig economy, which is growing at 15 per cent annually, will touch 9 lakh professionals by 2030. Currently, India's IT/ITeS sector employs 3,90,000 flexi workforce, accounting for around 7 per cent of the total 5.8 million professionals in the sector, talent solutions provider Careernet said in a report - "The Rise of Flexi Staffing: Outlook for India's IT/ITeS Talent Landscape". The report projected this number to more than double to 9,00,000 by 2030, growing at a 15 per cent Compound Annual Growth Rate (CAGR). The Careernet's 'Rise of Flexi Staffing: Outlook for India's IT/ITeS Talent Landscape' report is based on real-time hiring data, market research, and industry trends. "With India being a global offshoring hub, demand for flexi workers is expected to rise in the IT/ITeS sector. India's IT/ITeS flexi staffing segment is undergoing a structural ...

GenAI disrupts software ADM market, 10-15% of IT services revenue at risk

While revenue growth from AI is still marginal, the larger question is how the industry can reinvent itself when one of its largest revenue pools becomes less labour-intensive