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Business Standard
|April 21, 2025
IT sector will have new winners and losers
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The latest results and guidance statements of India's large information-technology (IT) companies indicate trends that will redefine the IT services sector over the next two to three years. TCS, Infosys, and Wipro reported weak fourth-quarter (January-March) results, and the respective managements struck notes of abundant caution, pointing at the global uncertainties related to US tariffs. This uncertainty may lead to postponement and reduction in discretionary spending by clients. Demand for IT services may be weak in sectors like retail, logistics, and manufacturing, which are immediately impacted by disruptions in supply chains. The auto sector is critically affected, for example, and the auto supply chain is the most complex and globally distributed of all.
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