Indian IT Industry Pins Hopes On Demand Recovery After Tepid H1

Indian IT industry had a mixed year in 2024 with the year beginning with a tepid demand environment. Inflationary environment in the US & Europe coupled with uncertain business outlook prompted global enterprises to hold back technology spending. Owing to these factors, Indian IT firms posted weak results in the first half of this year.

Nevertheless, the focus of clients on cost optimisation resulted in several large deal wins for big IT players with a sound TCV (total contract value). Hiring in the first half also remained low with companies reducing their total headcount to save cost.

However, things have started changing for better towards the second half. With green shoots emerging in the key BFSI (banking, financial services, insurance) vertical along with US as a geography performing better, discretionary IT spending is likely to come back soon.

Hiring uptick, especially campus recruitment after last year’s lull, is also indicative of better times ahead and bodes well for the Indian IT industry.