INDIA IT SERVICES INDUSTRY
Govt looks to widen coverage of Index of Services Production, invites feedback
MoSPI began compiling the ISP on a monthly basis for the formal services sector on a trial basis in July 2026. The exercise uses 2024-25 as the base year and was designed to provide a higher-frequency measure of services-sector performance.
ElevenLabs bets big on India; GCC jobs shift
ElevenLabs is planning to expand its voice AI platform to include all 22 Indian languages. This and more in today’s ETtech Top 5.
The economics of India's biggest export industry goes topsy-turvy
India’s $315-billion IT industry faces a structural shift as AI boosts productivity but puts pressure on pricing, revenue and entry-level hiring. Clients are demanding more output for less, while spending shifts towards AI, cloud and in-house capabilities.
How AI is transforming India’s BPM industry
India's business process management landscape is remarkably transforming as it embraces artificial intelligence and smarter operations. This change signifies a shift away from age-old cost-centric models, aiming instead for tangible business results via cutting-edge technology. Leaders within the industry highlight the importance of novel workflow strategies, necessitating advanced skills and compliance mechanisms. With AI's growing presence, workforce roles are set to adapt, emphasizing critical decision-making and oversight.
SRIT India shares hit 5% upper circuit after strong debut, jump 19% from IPO price. Should you buy, sell or hold?
SRIT India shares rose 19% from the IPO price after making a strong debut on the NSE. The stock, however, fell short of grey market expectations. With the company’s digital technology services business gaining traction, analysts highlight revenue growth, profitability, execution and cash flows as key factors for investors.
India's services sector growth at 3-month high, but quarter weakest since 2022, PMI shows
India’s services sector expanded at its fastest pace in three months in September, with the HSBC Services PMI rising to 55.2 on stronger domestic demand. However, quarterly growth was the weakest since early 2022, reflecting softer hiring and exports. Manufacturing gains lifted the Composite PMI to 55.9, signalling a moderate recovery.
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AI Innovation in India: Turning business impact into industry recognition
As organisations move AI into business operations, demonstrating its value is only part of the challenge. Communicating that work, establishing credibility and reaching a wider industry audience matter too. The ET AI Awards 2027 offer organisations, teams and leaders a platform to showcase their work, gain an independent evaluation and build recognition around their achievements.
It’s safety first for gas suppliers at Semicon Inc
Suppliers want detailed guidelines from the Petroleum and Explosives Safety Organisation (PESO), without which they believe commercial hubs face heightened risk of leaks, fires and process disruption.
20,000-plus people shift as IT firms buy GCC, captive tech carve-outs
TCS’s takeover of Best Buy’s India GCC under a multiyear deal is the latest example, while HCLTech’s $10.5-million acquisition of Guardian Life’s India operations brought nearly 2,000 employees into the company under a seven-year partnership.
India's growth outlook remains robust, but risks rising: Erik Berglof
India's growth prospects remain strong despite external shocks affecting the economy. Erik Berglof highlights the need for resilience against climate and geopolitical risks. He notes that high US bond yields could impact emerging economies due to higher interest costs. Additionally, energy and water security are identified as critical areas needing improvement.
Bengal, count plants, not promises: The real test of its industrial comeback
In a bid to enhance industrial investment in West Bengal, finance minister Swapan Dasgupta plans to overhaul outdated land use regulations. This initiative will introduce new policies like land pooling and financial incentives tied to job creation for emerging projects. The historical challenges have stunted the region's industrial advancement, prompting the need for robust administrative reforms.
Semiconductor push, govt support driving EMS sector's growth, but valuation remains a concern: How 3 stocks with most buy calls are placed
Investor enthusiasm around the sector is visible in the performance of nine EMS stocks covered by multiple brokerages. The group has delivered an equal weighted average return of 55.3% so far in 2026, compared with 1.1% for the Nifty 500 Equal Weighted Index. Seven of the nine stocks have delivered posi tive returns, while three have gained over 100%. The analysis is based on closing prices as of 28 September 2026.
AI deals seen driving medium-term growth as Indian IT sector faces muted Q2: Report
India's IT services sector is likely to see muted performance in the second quarter of FY27, but increasing traction in artificial intelligence-related deals could support growth over the medium term, Centrum said in a report.
Blockbuster Accenture show holds out hope for battered Indian IT
Accenture's latest financial performance has sparked renewed optimism among investors in the Indian IT sector. The strong results hint at a revival in client discretionary spending. Analysts underscore the need for Indian IT firms to enhance their artificial intelligence capabilities to successfully tackle upcoming challenges. Accenture's forecast suggests improved market conditions and steady margins, painting a picture of a resilient industry.
India needs its own AI safety framework, not a copy of US pact: Industry experts
India should build its own artificial intelligence (AI) safety framework suited to its languages, scale, and application-led AI ecosystem rather than replicate a voluntary pact signed by US President Donald Trump and top technology firms last week, industry experts said.
IT Q2 preview: Muted growth, steady margins likely; deal conversion, AI deflation in focus
Research advisory UnearthInsight expects the top-five IT companies to grow 0.5-1% quarter-on-quarter in the second quarter of FY27, with little improvement over the April-June period.
India needs its own AI safety framework, not a copy of US pact: Industry experts
Industry experts say India should develop an AI safety framework tailored to its own languages, scale and application-driven ecosystem rather than simply copy the voluntary US pact signed by major tech firms. While there is broad support for independent audits, accountability and safeguards against deepfakes and cyberattacks, experts differ on whether India should rely mainly on self-regulation or combine voluntary standards with binding rules.
IT Q2 review: Muted growth, steady margins likely; deal conversion, AI deflation in focus
India's leading IT firms are projected to exhibit modest revenue growth and stable margins for the second quarter. Analysts anticipate that discretionary spending will remain constrained due to geopolitical issues affecting client budgets. As such, decision-making cycles are expected to prolong for upcoming quarters. Additionally, AI advancements are predicted to impact traditional services and revenue generation timelines.
IT sector faces another muted quarter as pricing pressure, geopolitics weigh on growth: Report
India's IT sector is expected to see limited growth in Q2FY27 due to various pressures and headwinds. Predictions indicate large-cap firms might experience a modest revenue increase, while mid-cap companies could outperform. Although margins might improve slightly, profitability could continue facing challenges from investment needs. The Nifty IT index has dropped significantly, reaching multi-year lows due to weak demand.
Scott Bessent says AI industry must own its risks and find solutions
Anthropic PBC Chief Executive Officer Dario Amodei, OpenAI chief Sam Altman and SpaceAI Corp.’s Elon Musk in September called for the industry to slow development of its most advanced models, citing growing risks for humanity.
AI breaks India’s linear growth model, but campus hiring remains weak: Nasscom’s Rajesh Nambiar
Nambiar said large IT and BPM companies have cut back on campus hiring over the last three years, which is not expected to change while the industry is in the middle of its shift to AI.
Indian robotics, Agri and medtech startup showcase capacities at Moscow Startup Summit
The two-day event concluded Wednesday at SberCity, backed by Russia’s biggest bank Sberbank. The event was organised by the government of Moscow and Sberbank.
IT firms reboot fresher hiring, but experienced pros hold upper hand
Fresher hiring, which fell to a record low of around 110,000 in FY26, will reach 115,000 to 135,000 this fiscal year, according to recruitment firm Quess Group’s estimates. This marks a likely increase of 4.5-22.7%.
TCS to take over Best Buy's India GCC under multiyear deal
Tata Consultancy Services has entered a multiyear agreement to acquire Best Buy's global capability centre located in India. While the financial aspects and employee count remain private, this move aims to transform the centre into an AI-driven engine, optimizing operations and AI integration. The collaboration seeks to synchronize Best Buy's requirements with TCS's technological and retail know-how, potentially establishing a valuable framework for the retail sector as well.
‘Productivity growth in consumer services is powering India’s rise’
Dani Rodrik highlights the relationship between ending poverty, boosting the global middle class, and addressing climate change. He emphasizes the importance of transitioning from manufacturing to services in the global economy. As digital technologies evolve, they enhance productivity in services and create equitable opportunities. The decline of the middle class threatens democracy, leading to political instability in many countries.
IT companies forecast to post muted second quarter
Sector leader Tata Consultancy Services and its nearest rival, Infosys, are projected to report weak numbers for the three months ending September 30. Analysts tracked by ET on average forecast TCS to post organic revenue growth of 0.5% sequentially and 2.8% from a year earlier. They expect Infosys to report a 1.1% quarter-on-year and 0.2% year-on-year increase in organic revenue, which excludes income from acquisitions.
AI pressure, client caution cloud Indian IT earnings in September quarter
India's top IT firms are bracing for underwhelming earnings as they revise annual revenue growth expectations downward. The duel of AI-induced pricing pressures alongside restrained client spending is squeezing profit margins in the industry. Analysts predict a gradual sequential revenue rise ranging from 0.7% to 3.5% for the major players, while even giants like Infosys may lower their projections.
Dodging SaaSocalypse: AI’s enterprise moment could belong to IT services
ITC Infotech's merger with Happiest Minds highlights the trend of mid-market consolidation in response to AI advancements. The global IT market faces challenges, requiring companies to adopt AI-centric capabilities for survival. Enterprises are burdened with legacy systems, which present both challenges and opportunities for funding technological transformations. Companies will need to adapt to the evolving landscape by integrating AI into existing frameworks effectively.
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