Indian IT firms to see revenue decelerate by 5%: S&P Global Ratings

Macroeconomic (macro) concerns, along with a cautious approach towards discretionary information technology (IT) spending, will see the revenue for Indian IT firms decelerate by 5 per cent through 2024-25 (FY25), from the highs of 12-18 per cent in 2022-23, said analysts from S&P Global Ratings.

“The reason behind this slow growth is a macro slowdown. Customers are cutting their discretionary IT spending, especially on projects that take longer to deliver quantifiable outcomes. We also acknowledge that there are still strong economic headwinds for the next few years,” said Spencer Ng, associate director, corporate ratings, S&P Global Ratings, over a call in a media briefing.