IT firms navigate workforce cuts, US slump, AI opportunities

In FY24, the domestic IT sector led by behemoths such as Infosys, Tata Consultancy Services (TCS), and Wipro, encountered a confluence of challenges and strategic pivots. Notably, the sector faced a collective headcount reduction, a downturn in the US revenue, a fluctuating performance in the BFSI sector and a paradox of rising deal wins not translating into equivalent revenue growth.

This complex scenario unfolded alongside proactive strides into artificial intelligence (AI) and generative AI (GenAI), areas that both promise future gains but are currently shadowed by a cautious market outlook.