Representative End User Clients
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Introduction
Financial results during calendar period from January 1 to March 31.
Indian IT firms are bracing for a challenging FY25-26, with client spending uncertainties and US tariffs weighing on growth. Companies are hesitant on wage hikes, and hiring remains
strategic rather than expansive.
Yes, the Indian IT services sector is projected to grow at 2 percent year-over-year in FY2025, largely driven by infrastructure management, networking services, cloud-based software testing, and consulting.
Despite macroeconomic uncertainties and cautious client spending, enterprises continue to prioritize cost optimization and operational excellence, leading to steady demand for cloud and AI-driven solutions.
Executive Summary
Recent US tariff policies have significantly impacted IT hiring in India. Reports indicate that talent
demand in the Indian tech sector may fall by 10 percent in early 2025. Major IT firms like TCS, Infosys, and Wipro have signalled heightened caution, with hiring slowing and wage hikes being deferred.
The IT services sector reported a strong performance compared to the last year. Indian IT & Services industry recorded combined quarterly revenue of $24 billion and recorded 4 percent year-over-year (YoY) growth as compared to last year.
Both tariffs and AI adoption are reshaping the hiring landscape in Indian IT. Despite these challenges, AI-driven efficiencies and digital transformation remain key focus areas for IT firms.
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