Signs of revival for IT firms as deals pick up

Infosys drives gains on better execution, AI-led transformation

- URVI MALVANIA

AFTER SEVERAL QUARTERS of muted performance, large IT services companies showed the first signs of stabilisation during the July-September quarter.

Project deferrals that had plagued the industry began to ease, client decision-making improved marginally, and deal execution picked up pace. While demand remains far from buoyant, the quarter marked a steadying of sentiment across the sector as firms leaned on operational discipline, cost-optimisation deals and early traction in AIled transformation programmes.

For the big four—Tata Consultancy Services (TCS), Infosys, HCLTech and Wipro—sequential growth returned across the board, reflecting the gradual normalisation of client budgets and resumption of previously stalled projects.

THE MANAGEMENT COMMENTARY was consistent in tone that the environment is stable but constrained, with clients continuing to prioritise efficiency over discretionary spending. The overall message, was one of cautious optimism.

The quarter also reinforced a key shift underway in the global technology services landscape.