Wednesday, 2 April, 2025

Regulatory Uncertainties and Client Budget Cuts Likely to Delay IT Sector Recovery

India's $280 billion IT services sector faces potential delays in recovery due to heightened regulatory and economic uncertainties, alongside sporadic pauses in corporate IT budgets. Analysts project a sequential revenue decline of up to 1.3% for the quarter ending March 31, with mid-tier firms potentially outperforming larger rivals. Clients are expected to continue prioritizing cost reduction and vendor consolidation in the new fiscal year. ​