The information technology (IT) sector is expected to experience moderated growth during the transition phase of a new technology cycle. According to a report by Morgan Stanley, spending on IT services may increase at a slower rate compared to the overall growth of the United States economy.
The medium-term outlook for the information technology (IT) industry in the country remains cautiously optimistic despite persisting macroeconomic headwinds and continued client spending caution, according to a research outlook report on the IT sector by Mirae Asset Sharekhan.
The Indian Information Technology (IT) sector is likely to see flat revenue growth of 0 to 2 per cent year-on-year in the current financial year (FY26), according to a recent report by CareEdge Ratings.
Margins for some Indian IT companies are likely to decline in the upcoming third quarter of FY25 due to seasonal and structural factors, according to a report by SBI Securities.
A significant factor bolstering this positive outlook is the reduction in deal leakages compared to FY24, signaling stronger operational momentum for the sector.
The Indian IT sector is poised for strong earnings growth in the coming years, with a projected double-digit Earnings Per Share (EPS) Compound Annual Growth Rate (CAGR) of 17.5 per cent from FY24 to FY27, according to a recent industry analysis report by Nirmal Bang Equities.