Search
+
    Invest with Confidence. Lead with Insights.
    • Drench in the knowledge with exclusive insights, ePaper & smart market tools with ETPrime.

    No margin for error for Indian IT firms

    Synopsis

    Information technology service providers are facing the best demand environment in a decade, soaring revenue and all time high deal wins and yet their margins are playing spoilsport. Disruptors like inflation and massive employee costs upset their operating math.

    Indian information technology (IT) service providers seem to be checking all the right boxes, except one.Revenue growth, new client wins, fresher intake, headcount additions, share of Digital in deals: they are scoring big on all these, but one factor is playing spoilsport - operating margin.The trend of falling operating margins has been secular across IT companies in the fiscal first quarter.Be it industry leader Tata Consultancy Services
    • FONT SIZE
    • SAVE
    • PRINT
    • COMMENT
    ET

    Uh-oh! This is an exclusive story available for selected readers only.

    Worry not. You’re just a step away.

    Why ?

    • Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

    • Stock analysis. Market Research. Industry Trends on 4000+ Stocks

    • Clean experience with
      Minimal Ads
    • Comment & Engage with ET Prime community
    • Exclusive invites to Virtual Events with Industry Leaders
    • A trusted team of Journalists & Analysts who can best filter signal from noise
    • ​Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-​

    The Economic Times