IT News: A huge challenge for IT companies.. This is the situation of Infosys, TCS employees..!
Tech IT News: The real testing period has begun for Indian IT companies. By the time the company, which slipped from boom to crisis after Corona, was breathing a sigh of relief, the political situation in America had completely changed. Along with competition in business, companies hiring techies for huge packages for talent hunting has also increased the burden. In this context, the number of new deals has also not been as expected, which has brought a new testing period.
IT News In such a situation, along with India’s leading IT services companies like TCS, Wipro, Infosys, HCL, foreign tech companies like IBM, Accenture, Capgemini, which have a large number of Indian staff, are intensifying efforts to renew their previous projects as they are coming to the end of their terms. In such situations, foreign companies may assign the service contract to an existing company or transfer it to another company in the bidding process. In such a situation, Indian companies are trying to hold projects by sacrificing their margins. Therefore, Indian tech companies will have to cross a big test period from January 2025 to March 2026.
On the other hand, many foreign companies are setting up their GCC offices in India. Moreover, they are also offering huge packages to attract the talent pool. In this way, the tech companies that set up their own centers in India can take the entire project back from the Indian IT service providers and take it forward with their own employees. This can be said to be a major dilemma for tech companies.
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While it is true that Indian IT services companies are getting more revenue due to the appreciation of the dollar due to the depreciation of the rupee.. but non-renewal leads to a big problem for tech companies. If a company is unable to renew a big contract and loses business, it directly affects the company’s revenue and profit metrics. In response, management reduces variable pay, salary increments, and promotions. If the situation gets out of hand, IT companies do not hesitate to lay off employees. Along with investors in the market, employees working in the IT industry are also watching this situation with interest. Many domestic techies are concerned that the condition of employees already on the bench will deteriorate further if there are no projects. Experts warn that this effect may also have a negative impact on the shares of tech companies in the equity markets. IT News