IT Services Companies Q1 Margins Show Early Signs of Impact of Slowdown | In the News

While making gung-ho claims about continued growth opportunities ahead, CEOs of India’s top IT companies aren’t leaving anything to chance as the world prepares for a slowdown and a recession in the US, the biggest technology market. In fact, the current fiscal year’s first quarter’s numbers show that Tata Consultancy Services, Infosys, and others are willing to trade some profit margins if it wins them large contracts and keeps the cash flow going.

“There are two factors at work with the lower margins. The first is that ever since Salil took over he has signaled that he feels that Infosys is unwise in keeping industry high margins, and investors would be better served if they were to lower margins and use the surplus to invest in growth,” Peter Bendor-Samuel, founder and CEO of Everest Group, tells Forbes India in an email.

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