Page 9 - It Sector

IT sector to see second consecutive year of muted revenue growth: CRISIL

The Indian IT services sector is staring at a second consecutive year of muted revenue growth due to modest increase in tech spends in Europe and the US, a domestic rating agency said on Wednesday. Crisil Ratings said it expects the sector to grow at 5-7 per cent in FY25, after a growth of 6 per cent estimated to have been achieved in FY24. The overall industry size is pegged at USD 250 billion and it creates over 50 lakh direct jobs. "The slowdown in technology spend will continue this fiscal, weighing on the revenue growth of IT service providers," said Aditya Jhaver, director at Crisil. The industry is, however, expected to sustain in the key metric of profitability, as the operating profit margins will be stable at 22-23 per cent, the agency said, attributing it to prudent management of employee costs. Crisil said the sectoral revenues achieved a compounded annual growth rate of 12 per cent for the decade through FY24. High interest rates and economic slowdown in client mark

Infosys Q4 results: Net profit jumps 30% to Rs 7,969 cr, revenue up 1.3%

Firm expects revenue growth of 1-3% in FY25

Decline in IT staffing slows flexi employment in third quarter: ISF

Staffing in other sectors increased by 3.8% Q-o-Q in Q3, driven by demand from e-commerce, retail, logistics, manufacturing, and hospitality

Stocks to Watch today: TCS, GIC, HAL, LIC, Anand Rathi, Aster DM, IT shares

Stocks to watch on Monday, April 15, 2024: IT shares, led by TCS, are expected to be in focus after the Tata group IT major reported better-than-expected Q4 numbers.

CNH's India technology centre to be the largest by the end of CY24

The centre, which has a headcount of 700, will touch 1,000 by the end of CY24

IT firms bracing for muted show amid weak global macros, tight spends

Indian IT companies are seen signing off FY24 on a subdued note with an uncertain global macroeconomic environment dragging tech demand and client spends, analysts said, forecasting modest commentary and cautious tone by the tech pack on FY25 outlook. The grand IT earnings season opens on Friday with results of Tata Consultancy Services (TCS), followed by Infosys scorecard on April 18 and Wipro on April 19. Tech Mahindra is scheduled to announce Q4 and full-year numbers on April 25, whereas HCL Technologies will declare its numbers on April 26. Emkay in its quarterly preview recently said subpar growth should persist in Q4 as muted demand trends continue on account of weak discretionary spending and cautious behavior by clients amid uncertain macros. It predicted FY24 ending on a "weak footing", and noted that recovery hope has shifted to the second half of FY25. "Global companies such as ACN (Accenture), CTSH (Cognizant Technology Solutions), and CAP (Capgemini) have also guided f

Wipro appoints Malay Joshi as CEO for 'Americas 1' strategic market unit

Joshi is a company veteran who joined Wipro in 1996 and has had an extensive career spanning over 28 years in various leadership roles across functions, industries, and geographies

'Main goal complete with foundational elements', says outgoing Wipro CEO

IT company is seen as a 'transformation partner' by clients and is set for growth, says Thierry Delaporte in farewell email

Recency bias, global cues underpin elevated valuations: Sailesh Raj Bhan

Bhan highlights that quick-service restaurants (QSRs), large banks, select utilities, and commodity businesses are a few market segments that are still sensibly valued

Financials, IT power stocks to record closing high before RBI rate decision

While the rate pause is a given, RBI's commentary on the inflation outlook will be crucial, especially for consumer stocks, said analysts

Meity calls for plans on India-EU cooperation on high-performance computing

The objective of the joint call is to create solutions and use cases in the mutual areas of interest using high-performance computing, said the ministry

White-collar gig jobs see a 184% uptick in hiring, says Foundit report

The share of IT software in the gig economy has nearly doubled, jumping from 22 per cent in March 2023 to a dominant 46 per cent in March 2024

US raises concerns with India on import of select IT hardware goods: Report

The US on Friday said it has raised concerns with India regarding the import regime of certain information and communications technology products, including laptops, and tablets, amid New Delhi's decision to restrict inbound shipments of such products. At present, an authorisation is needed for importers of certain IT hardware goods into India. The USA's National Trade Estimate Report on Foreign Trade Barriers 2024 also said American exporters have raised concerns over the lack of prior stakeholder consultations on the issues. "The United States continues to monitor implementation and to raise concerns with India (on this)," it said. The report alleged that the "opaque and unpredictable" nature of India's application of quantitative restrictions has affected the ability of US exporters to access the market. "The United States continues to raise this issue, along with other trading partners, at the WTO (World Trade Organisation)," it said, adding that the US government continues to

Top 20% of Urban Company partners earn 50% more than entry-level IT jobs

According to the latest NCAER report published in August 2023, gig workers on food delivery platforms earn an average of Rs 13,581 monthly net of all costs, after an active long-shift

IT industry opposes Karnataka IT Union's call to end relief in labour rules

On March 16, a section of IT employees, under the banner of KITU, staged a protest in front of the labour commissioner's office in Bengaluru to press for their views

Wipro promotes 31 staff to senior roles after top-level exodus: Report

The promotions, seen by industry watchers as a move to stem senior-level attrition, came after a series of high-profile exits at the country's No.4 software services exporter

TCS signs 7-year deal to transform IT infrastructure for Denmark's Ramboll

TCS will provide services to manage Ramboll's Cloud and data centres, application development, maintenance

HCLTech, CAST expand alliance to offer customised semiconductor chips

IT company HCLTech on Tuesday said it has expanded its alliance with semiconductor intellectual property (IP) core provider CAST to provide customised chips and aid enterprises in accelerating their digital transformation. HCLTech said it will enhance design verification, emulation, and rapid prototyping of its turnkey system-on-chip solutions by using silicon-proven IP (intellectual property) cores and controllers from CAST. This will help original equipment manufacturers in varied industries, including automotive, consumer electronics and logistics, to reduce engineering risk and development costs, a company statement said. "CAST's high-quality and well-supported IP cores, coupled with HCLTech's system integration design expertise, will enable us to deliver superior custom chips to our customers worldwide," said Vijay Guntur, President, of Engineering and R&D Services, HCLTech.

IT spending in India to grow at 9.9%, to cross $59 billion by 2027: IDC

The IT spending in India is likely to grow at a compound annual growth rate of 9.9 per cent over the coming years to cross the USD 59 billion mark by 2027, as the software market consistently showing double digit growth across the forecasted years, International Data Corporation (IDC) said on Thursday. The IT spending in India for 2024 is expected to grow by 11 per cent year-on-year to reach USD 44 billion in 2024, according to market research and analysis firm IDC. While speaking at India CIO Summit organised by IDC, the company's Head of WW Strategy and Senior Vice President & Regional Managing Director for EMEA Steven J Frantzen said Generative AI (GenAI) will continue to accelerate AI adoption in India, with more leading organisations exploring or investing in GenAI use cases. "Even with economic headwinds and uncertainty in 2024, we anticipate that global ICT spending will expand by more than 6 per cent (3x of projected GDP growth) as we enter a new era of accelerated digital

PM Modi lays foundation stone of 3 semiconductor projects worth Rs 1.25 trn

The prime minister said the projects will make India a global semiconductor hub