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Tech trials
Financial Express Kochi
|April 30, 2025
India's famed IT giants must fine-tune their strategies to cope with an uncertain world
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These are challenging times for India's $280-billion software services sector. Not only do they face slowing spends by their overseas clients, they are also grappling with the impact of artificial intelligence (AI) on pricing. The threat of a sharp slowdown in the global economy following the tariff wars has prompted large consumers of technology—companies and banks—to work with fewer vendors, and any expenditure that's not critical is being postponed.
They are also looking to drive hard bargains, passing on their pain to vendors. By some estimates, spends may not increase by even 4-5% in 2025-26 owing to project deferrals, cancellations, and delayed decisions.
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