IT sector growth to inch up to 6 per cent in FY25, hiring to be moderate for 3 qtrs: Icra

Domestic rating agency Icra on Monday said the Indian IT sector’s revenue growth will inch up to over 6 per cent in 2024-25 from 3-5 per cent estimated for the ongoing financial year.

The slower growth will have an impact on the hiring plans, the agency said, adding that staff addition will continue to remain “muted” for the next 2-3 quarters. The USD 250-billion industry grew by 9.2 per cent in FY2022-23.

The muted hiring outlook is the result of a weak demand scenario and companies will be focusing on utilising the capacity in the past and improving the overall utilisation levels, the agency said.