The Indian IT industry is likely to experience mid-single digit revenue growth in the current fiscal year, similar to pre-pandemic levels. Global IT firms, including Accenture, Cognizant, and Capgemini, have issued lower revenue growth guidance for 2024, suggesting a continued subdued demand environment. Accenture's reduced guidance from 2-5% to 1-3% for the fiscal year 2024 reflects constraints in client IT spending due to uncertain macroeconomic factors. This trend is expected to affect Indian IT firms' growth prospects in the upcoming quarters.

Bengaluru's status as India's IT hub is threatened by infrastructure issues and a severe water crisis. Industry officials warn that without urgent action, cities like Hyderabad and Pune may overtake Bengaluru due to their better infrastructure and civic facilities. The water shortage, exacerbated by insufficient rainfall, has forced IT companies to rely on water tankers and implement work-from-home arrangements. Experts blame rapid urbanization, poor planning, and local government apathy for the crisis. Solutions like atmospheric water generation technology are being explored to mitigate the situation.

Incruiter, a company offering technology-powered interview solutions, helps companies save time and money during remote recruitment. CEO Anil Agarwal explains that Incruiter's services streamline the screening process, making it faster and more cost-effective. The company's AI Interview Software detects anomalies during interviews to prevent cheating. Incruiter, which began in 2018, has released six products, with 'Interview as a Service' being the standout. They charge clients per interview and user, operating in the Middle East, South East Asia, the US, and India, with plans to expand. The company is profitable, has grown its team, and is looking to raise $2-3 million in capital to grow globally.

JP Morgan anticipates a demand recovery for the Indian IT services industry in 2024, driven by expected interest rate cuts from the US Federal Reserve. The brokerage has upgraded its outlook for major Indian IT firms, including Infosys and L&T Technology Services, to 'overweight' and others like TCS, HCLTech, Mphasis, and Persistent Systems to 'neutral'. The Indian IT sector faced a significant slowdown in 2023, but potential rate cuts and cost-saving measures by enterprises are expected to create a better demand environment. The US Federal Reserve's planned rate reductions could lower the cost of capital, enabling more investment in technology advancements. Currently, discretionary spending by clients is on hold, impacting digital deals and overall growth.

The Indian IT industry experienced a slowdown in 2023 due to deferred technology spending by global enterprises amid economic uncertainty. Key highlights include the high growth in the engineering services segment, significant leadership changes, and the emergence of generative AI as a crucial technology area. Major IT firms like Infosys, Tech Mahindra, Cognizant, Wipro, and TCS saw numerous top-level exits. Hiring slowed down significantly, with a notable reduction in workforce and a halt in fresher recruitment. Operating margins were pressured by high wage costs and reduced revenue growth. Experts suggest that any recovery in 2024 will depend on sentiment changes in the US and European economies, potentially influenced by US Federal Reserve rate adjustments.

Global enterprises are increasingly establishing their own technology centers in India, particularly in the manufacturing and BFSI sectors, to manage technology development internally rather than outsourcing to IT services companies. This trend has accelerated in 2023, with many financial services clients performing a significant portion of their technology work in-house. The number of Global Capability Centres (GCCs) in India has grown, with new centers emerging in both tier-I and tier-II cities. Despite the insourcing trend, global firms are expected to continue outsourcing projects in emerging technology areas. The GCC sector has seen an increase in hiring and salary hikes, although this growth may stabilize in 2024.

The Indian residential real estate market experienced a significant 31% growth in home sales in 2023, with top cities like Mumbai and Pune leading the surge. Despite rising property prices and high home loan rates, the market saw record-breaking sales, with Mumbai Metropolitan Region registering the highest sales. Southern cities like Hyderabad and Bengaluru also showed substantial growth. ANAROCK Group's Chairman, Anuj Puri, noted that the market defied expectations of a slowdown due to global and domestic economic challenges. The demand is expected to remain strong in 2024, even with anticipated price hikes.

India's domestic consumption is a strong investment theme, with a significant rise in per capita income and the country poised to become the third largest economy. Venture capital funds like Fireside Ventures, with a Rs 3,000 crore fund, are investing in home-grown brands such as boAt and MamaEarth. Dipanjan Basu, Cofounder & Partner at Fireside Ventures, anticipates the emergence of large consumer brands in India. The fund focuses on pre-series A investments, typically investing Rs 10-Rs 15 crore initially and scaling up in future rounds. Fireside Ventures has a notable exit track record and is currently deploying capital from its third fund, planning to make around 25 investments. The fund has partially exited MamaEarth during its public listing and continues to hold a stake.

Indian IT firms are experiencing shorter contract renewals with lower volumes of work committed by clients, leading to concerns about revenue growth in 2024. The trend, observed during contract renewals in December-January, includes one-year extensions and deals with lower annual contract value but higher total contract value. Tata Consultancy Services, Infosys, and Wipro have secured large deals but expect low single-digit revenue growth this year. Brokerage firms anticipate growth challenges for the first half of 2024, with a potential recovery depending on large deal momentum and discretionary spending in sectors like financial services and hi-tech.

PhonePe has introduced a new credit section on its platform, allowing users to check their credit bureau scores for free and manage their credit or Rupay cards. The company aims to empower users with tools to understand and manage their credit health. PhonePe plans to launch consumer loans within its app soon, working as a distributor for personal loans and developing underwriting tools. The initiative is part of a broader trend among payment platforms to offer loan services in collaboration with banking partners.

The Indian IT industry is expected to face continued challenges in 2024, with sluggish growth anticipated for the first two quarters. Despite potential interest rate reductions by the US Federal Reserve, sentiment remains low, and significant growth may not return until 2025. The US is projected to outperform the European Union in growth, with the healthcare and engineering sectors expected to excel. Major Indian IT firms like Infosys, HCL Tech, Tata Consultancy Services, and Wipro have adjusted their revenue and growth forecasts in response to the tepid demand environment.

Revenue growth and cost optimisation will be the primary focus for enterprises in 2024, leading to more cost takeout contracts for IT services providers globally. A study by Everest Group highlights that clients will seek more value for less spend, resulting in pricing pressure for IT service providers. Enterprises will prioritize modernizing technology, data analytics, and process optimization, with increased investment in GenAI. Despite a demand slump in 2023, the global IT-BPM services industry is expected to grow, with most enterprises planning to maintain or increase their global services budgets in 2024.

Office rentals in Chennai saw the highest increase in the first half of the current financial year, with a 10% rise to Rs 68 per sq ft. Hyderabad followed with an 8% increase, while Bengaluru, Pune, and Kolkata also experienced notable rises in office rental values. The overall average rental values across the top seven cities grew by 7% due to increased construction and input costs, with Grade A office rentals averaging Rs 83 per sq ft per month.

Provident Housing, a subsidiary of Puravankara Group, anticipates a 25-30% sales growth driven by strong demand for housing properties. The company is developing 5.8 million sq ft of space and focusing on large township projects in nine cities. CEO Mallanna Sasalu highlighted the potential for public listing and ongoing talks with financial institutions to raise around Rs 1,000 crore for business growth. The company aims to grow sustainably within its targeted segment.

Shares of Paytm fell nearly 20% as the company announced plans to significantly reduce small-ticket postpaid loan disbursements, a move influenced by the Reserve Bank of India's tightened consumer lending rules. The central bank's recent increase in risk weight on consumer loans has led Paytm to focus on higher-ticket loans instead. Brokerage firms Jefferies and Motilal Oswal Financial Services predict a substantial decline in Paytm's BNPL disbursements and overall loan disbursement run rate, causing investor concern despite management's assurances of minimal revenue impact.

TreadBinary, a technology and consulting company founded by Yuvraj Shidhaye and Darshil Shah, has experienced rapid growth since its inception. The company focuses on product development and consulting in the technology industry, providing solutions to industry-specific problems. TreadBinary has developed products like 'HAC' and 'digitally optimized supply chain planning- doSCP', and has a strong customer base in Europe and North America. With a current turnover of Rs 4 crore and an expected top line of Rs 12 crore for the next financial year, the company aims to increase the contribution of product revenue to its total revenue. TreadBinary remains bootstrapped, focusing on cashflows and internal operations scalability.

Thales has completed its acquisition of US cybersecurity company Imperva ahead of schedule, a move expected to create around 100 jobs in India. The $3.6 billion deal aims to bolster Thales' digital identity and security division and expand its market share in the United States. The acquisition will significantly enhance Thales' Digital Identity and Security (DIS) activity, with expected organic sales growth of 6-7%. Thales' technology center in India, which already employs over 500 people, will see an addition of more than 100 employees in Bengaluru and Mumbai. This acquisition marks Thales' ninth in the digital security sector over the past nine years.

The BFSI (banking, financial services, and insurance) vertical is experiencing significant stress due to macroeconomic uncertainties, with no expected change until the next year. Despite being a major revenue contributor for IT firms, BFSI's growth remains low compared to other sectors. Cognizant reported a 4% year-on-year decline in BFSI revenue, while Infosys and Tata Consultancy Services also saw declines. High interest rates in the US and EU are impacting the mortgage segment within BFSI. Some IT firms are securing large deals in the BFSI segment due to cost takeout deals. Experts, including V Balakrishnan of Exfinity Ventures, indicate that interest rates are unlikely to decrease soon as inflation has not reached a comfortable level for central banks.

Indian IT firms are expected to report subdued revenue growth and a decline in overall headcount for Q3 2023. Analysts predict better operating margins due to cost reductions, despite weak revenue from large deals. Infosys, HCL Tech, Tata Consultancy Services, and Wipro have all reduced their workforce significantly. Infosys and HCL Tech have also lowered their revenue growth guidance for FY24. Investors are closely watching upcoming earnings reports and management commentary on future growth, hiring, and AI-led engagements.

Venture capital and private equity funds are optimistic about consumption-related startups in India, despite a general funding downturn in the tech sector. Fund managers see significant opportunities in consumer brands, driven by a growing number of shoppers. Successful listings of companies like Mamaearth and Nykaa have created positive sentiment, although early-stage funding remains challenging. Fireside Ventures, a consumer-focused VC fund, highlights the potential for profitable businesses in health, wellness, and lifestyle sectors.

The festive season is expected to drive significant sales growth for paint companies in the October-December period of FY24, offsetting the subdued sales from the first half of the fiscal year. Nuvama Institutional Equities predicts a 15% year-on-year volume growth due to festive demand, a low base, the wedding season, and increased real estate activity. Paint companies like Asian Paints, Berger, and Kansai are ramping up production capacity to capitalize on this opportunity. The wedding season, with 3.5 million weddings expected between November 23 and December 15, 2023, is also anticipated to boost paint usage.

Private Equity and Venture Capital funds in India have begun to cautiously invest in startups again, with a slow pace of deployment. Despite a 77% drop in funding from January to July 2023 compared to the previous year, August saw a significant increase to $5.2 billion across 67 deals. Infrastructure was the leading sector for investment in August, largely due to GQG Partners Inc's investment in Adani Power Limited. Industry experts, including Dinesh Goel of Siana Capital Management, believe that the Indian startup ecosystem has strong growth potential. Large funds like Matrix Partners and Catamaran Ventures are preparing to invest in the Indian market, and recent successful IPOs, such as Mamaearth's, suggest a potential end to the funding slowdown.

Newgen Software announced a 1:1 bonus share issue, meaning shareholders will receive one additional share for each share they own. The company's board also approved an increase in authorized share capital from Rs 110.10 crore to Rs 180.10 crore. This is the first bonus issue by Newgen Software, which has provided significant returns to investors, with its stock soaring 270 percent in the last year and 250 percent year-to-date. Despite pressure on the IT index, Newgen Software's net profit jumped 59 percent year-on-year in the September quarter, with revenue from operations rising 29.7 percent.

Indian petrochemical companies like Reliance Industries, GAIL, and Indian Oil are expected to face margin pressures in 2024 due to China's reduced reliance on imports and low demand in Europe. Chinese and Indian capacity expansions may lead to a supply glut, exacerbating the issue. Economic conditions in the US and Europe are not expected to improve, further impacting demand and margins.

Tata Consultancy Services (TCS) has entered into an agreement with the Australian Stock Exchange (ASX) to modernize its cash equities clearing and settlement platform using TCS BaNCS for Market Infrastructure. The implementation will occur in two phases, with the clearing service delivered first, followed by settlement depository and sub-register services. This approach aims to minimize delivery risk and manage stakeholder impact. TCS BaNCS, known for its multi-asset class capability, will provide a state-of-the-art technology stack for ASX, enhancing its market infrastructure.

Sam Altman's ouster as CEO of OpenAI by its board highlights the differences in corporate governance between Indian and US startups. V Balakrishnan, Chairman of Exfinity Ventures, advises Indian startup founders to retain control to avoid harsh board actions. The independence and decision-making speed of US boards contrast with the more cautious approach of Indian boards. Despite efforts by investors like Microsoft to reinstate Altman, OpenAI appointed Emmett Shear as the new CEO.

Marriage and festival season is expected to boost jewellery demand in the second half of the financial year, with Titan emerging as a major beneficiary. Despite subdued demand in October due to Shradh, it recovered subsequently. Titan is expanding its jewellery network and focusing on regional thrust and sub-brands like Mia, Zoya, and Caratlane. Tanishq added 10 stores in Q2, with a healthy new buyer proportion. The company is also targeting international expansion. Premium brands in watches and wearables, particularly Helios, showed strong growth. The eyewear segment saw a revenue increase of 12.6%. High gold prices may limit record-high demand for gold jewellery this fiscal year. Jewellery currently accounts for 88% of Titan's revenue.

Experts argue that if the IT industry adopts a 70-hour work week, it should come with matching compensation, similar to practices in manufacturing and retail. The debate intensified after Infosys founder NR Narayana Murthy suggested Indian youngsters should work 70 hours per week. Supporters believe this could accelerate India's growth by leveraging its young population, while opponents fear it could turn IT firms into sweatshops without proper compensation. Reports indicate a significant disparity in salary growth over the past decade between freshers and CEOs, with the median salary gap at companies like Infosys being notably high.

Housing rents in major IT centres have surged by 30% in the first nine months of 2023 as employees return to cities post-pandemic. Bengaluru leads with a 31% increase, followed by Hyderabad and Pune. Key areas like Whitefield and Sarjapur Road in Bengaluru, HITECH City and Gachibowli in Hyderabad, and Hinjewadi in Pune have seen significant rental growth. The rise in rents underscores the strength of the Indian Infotech sector despite industry challenges.

Cognizant and Tech Mahindra are experiencing a hiring uptick, indicating a potential turnaround amid a broader industry slowdown. Unlike their peers, these firms did not over-hire in the past two years, leading to a more balanced hiring approach now. Cognizant's headcount increased by 1,000 in the last quarter, and Tech Mahindra added 2,307 employees, both showing a decline in voluntary attrition. Leadership changes, with Ravi Kumar S joining Cognizant and Mohit Joshi set to become Tech Mahindra's CEO, have raised hopes for growth. Other IT companies, including TCS, Infosys, HCL Tech, and Wipro, have reduced their workforce by about 38,950 employees in the first half of the fiscal year.

L&T Technology Services announced a collaboration with Google Cloud to integrate generative AI technology into its LTTS Developer Experience Platform, aiming to enhance digital offerings and engineering services. The partnership will focus on developing an expansive API catalogue and experience, with the goal of reducing manual efforts and increasing development efficiency. Abhishek Sinha, COO of L&T Technology Services, expressed excitement about the AI-led innovation, while Chandra Sankholkar from Google Cloud highlighted the potential for improved operations and real-world business value.

Apple CEO Tim Cook highlighted India as a focus market for the company, citing the country's growing middle class and successful retail stores. Despite a 1% sequential decline in revenue to $89.5 billion in Q4, Apple's iPhone and services generated substantial revenue. Apple's market share in India is expected to increase from 4.5% to 6% in 2023, with the company also expanding its manufacturing presence in India. iPhone exports from India are estimated to be around $5 billion-$5.5 billion in FY23, making up about half of the country's mobile phone exports.

Europe has become a growth area for Indian IT services as the US market shows signs of a slowdown. In the second quarter, European clients contributed to large deals, with the UK being a notable growth spot. Tata Consultancy Services (TCS) saw a slight increase in North American revenue, but experienced better performance in Europe, particularly the UK. Infosys and HCL Tech also reported growth in Europe. Despite this, the European market may not fully offset the US slowdown. Peter BendorSamuel, CEO of Everest Group, anticipates a challenging end to the year and start to the next year for the Indian IT industry.

Indian IT firms have not yet observed significant investment in generative AI despite the hype, with many projects being experimental. Discretionary spending has decreased, and while there is interest in generative AI tools like ChatGPT for potential cost savings and transformation, substantial spending has not materialized. Infosys is actively working on over 90 generative AI programs and has trained 57,000 employees in the domain. The outsourcing market currently favors cost optimization deals, and there are delays in signings with a focus on vendor consolidation rather than new scope.

L&T Technology Services reported a 3.2% rise in revenue growth for the second quarter, with all five segments showing growth. The company remains optimistic about achieving its earlier revenue projection of 20% for FY24, despite revising its guidance to 17.5-18.5%. CEO Amit Chadha highlighted strong deal pipelines and continued hiring plans, including campus placements. The company is also investing in emerging technologies and employee upskilling. Despite industry-wide caution and delays in decision-making, LTTS is confident in its growth trajectory and aims to be a $1.5 billion revenue company by 2025.

Indian IT services providers are facing revenue leakage from existing projects, leading to a dip in revenue despite winning new contracts. Management from firms like TCS and Infosys have noted project closures or slowdowns, with clients conserving cash and optimizing current spend. This has resulted in a moderation of revenue growth and downward revisions of revenue growth guidance for FY24. Brokerage firms suggest that FY24 might be a washout year for the Indian IT industry, with hopes for a recovery shifting to FY25.

Infosys reported strong second-quarter financial results with a net profit of Rs6,212 crore and a consolidated revenue of Rs38,994 crore. Despite these gains, the company revised its FY24 revenue guidance downward due to slow decision-making and low discretionary spending in key sectors like telecom, hitech, and financial services. Infosys achieved its highest-ever large deal worth $7.7 billion but saw a decline in employee headcount and announced no campus placements for the year. The company also reported improvements in operating margins and employee attrition rates.

Top IT firms in India, including Infosys, TCS, and HCL Tech, are experiencing a significant reduction in headcount due to low project flow and loss of digital deals. The companies are focusing on cost optimization measures, including manpower reduction. The decline in employee count is attributed to involuntary attrition and lack of backfilling. Experts predict no improvement in hiring sentiment for the coming quarters, with further potential reductions in employee strength to protect margins.

Indian IT services companies are expected to report subdued revenue growth in the second quarter, with hiring sentiment remaining low and no recovery anticipated in the second half of the year. Market leaders Tata Consultancy Services and Infosys are set to announce their Q2 results on October 11 and 12, respectively. Analysts from JPMorgan and other brokerage firms have projected tepid revenue growth and low employee addition due to weak demand. Accenture's recent revenue guidance also reflects no signs of demand revival, with operating margins expected to remain under pressure.

Most mid-tier IT firms reported mixed performance in Q2, with some showing tepid revenue growth but a strong deal pipeline. Companies like LTI Mindtree and Persistent Systems are optimistic about a strong second half, while others like Happiest Minds have reduced their revenue guidance due to acquisition delays. Despite the challenging economic environment, some firms have managed to secure large cost takeout deals, providing revenue visibility for the next financial year. Share prices of IT firms remain under pressure, though some mid-tier firms have seen price increases following positive management commentary.

IT staffing firms are experiencing a significant downturn in hiring, with a 50% reduction compared to the previous year. The decline is attributed to reduced recruitment mandates from IT companies and a focus on improving employee utilization ratios. Major IT firms like Tata Consultancy Service, Infosys, HCL Tech, and Wipro have collectively cut their workforce by nearly 39,000 employees in the first half of the fiscal year. Additionally, subcontracting work has decreased as IT firms aim to cut costs. Despite the current challenges, there is an expectation of demand picking up next year as more projects are executed.

Indian IT firms are quietly reducing headcount through silent firing and not backfilling vacant positions, leading to a further drop in headcount expected in the third quarter. Major companies like Infosys, Tata Consultancy Services, and Wipro have reported significant reductions in their workforce. The hiring slowdown has also impacted engineering colleges, with a notable drop in placements. Attrition rates have decreased as employees become cautious about changing jobs amid a challenging demand environment.

Lateral hiring of IT professionals is seeing a slight increase in the current quarter, with expectations of further growth in the January-March period. Global Capability Centres (GCCs), IT firms, and some startups are driving this trend, despite a slowdown in fresher hiring. Indian IT firms have resumed backfilling vacant positions after a two-quarter halt, leading to a slight uptick in lateral hiring. The headcount of major IT firms like Tata Consultancy Services, Infosys, HCL Tech, and Wipro has decreased in recent quarters, but staffing professionals are optimistic about better hiring trends in the coming year.

Fractional ownership in real estate is gaining popularity in India, with more investors considering it to diversify their portfolios. Prudhvi Reddy of Assetmonk sees this trend growing as disposable income rises in the country. Fractional ownership allows investors to partially own large commercial properties through pooled investments. The market size in India was $5.4 billion in 2020 and is projected to reach $8.9 billion by 2025, according to Knight Frank. Upper middle-class professionals are increasingly interested in these investment opportunities, with entry investments starting from Rs 10 to 15 lakh. The growth of co-living, warehousing, student-living, and co-working segments has also contributed to the trend.

Wipro's Chief Financial Officer Jatin Dalal's exit adds to the disquiet among the top management, which has already seen several senior-level exits in the last 10 months. Dalal, who has been with Wipro since 2015, played a crucial role in the company's financial operations, including buybacks and acquisitions. His departure, along with other senior exits, raises concerns about the company's ability to retain top talent. Despite some growth in FY23, Wipro has lagged behind peers in revenue growth and operating margin. The company's share price dropped 2.5% following the news. Aparna Iyer, a Wipro veteran, has been appointed as the new CFO.

Funding in startups shows early signs of activity with five startups securing funding in the past week, indicating a potential end to the funding winter. DynamoFL, Aretto, Teleport, Plus, and BizPay have all raised early-stage funding from various investors. Despite a severe funding winter and significant job losses, some funds are beginning to deploy capital. Matrix Partners and Catamaran Ventures are among those planning substantial investments in the Indian market.

Premiumisation and focus on power brands by FMCG companies are expected to drive demand in the consumer sector in 2024. Experts highlight the importance of diversifying product portfolios with new launches to sustain growth. The trend of premiumisation, which has been growing over the past few years, is likely to continue as companies aim to enhance brand affinity and increase penetration in emerging channels. The shift in consumer demand towards premium products was evident in 2023, particularly in beverages, personal care, and branded commodities. The brokerage firm Nuvama Institutional Equities notes that the share of premium products is expected to rise significantly, driven by rising per capita incomes. Additionally, the minimum packet price of FMCG goods is increasing, with companies like Nestle India and ITC adjusting their product offerings accordingly. The easing of competition from local players is also anticipated to benefit large FMCG companies.

Large deals secured by IT firms recently are not expected to negatively impact operating margins in the short term due to increased automation. Despite initial concerns, companies like Infosys, Tata Consultancy Services, Wipro, and Cognizant have maintained or improved their margin profiles. Analysts note that while large deals may not dilute margins, vendor consolidation means firms may not see significant net gains. Key industry figures, including Nilanjan Roy of Infosys and Peter Bendor-Samuel of Everest Group, provide insights into the financial strategies and market dynamics.

IT industry is seeing increased allocation of funds towards Generative AI projects despite overall IT budgets remaining flat compared to last year. Companies are diverting investments from mature technology areas to GenAI, leading to faster project execution in some cases. However, global IT firms like Accenture and Cognizant have provided low revenue growth guidance for 2024, indicating a subdued demand environment. Indian IT firms are expected to announce their revenue forecasts for FY25 in April 2024. Some companies, such as Happiest Minds, are creating separate business units to capitalize on the emerging demand for GenAI services.

Indian IT firms face potential revenue losses of 20-30% due to the automation of tasks through Generative AI applications, particularly in testing and quality assurance. Experts warn of large-scale workforce displacement unless firms integrate GenAI and reskill employees. The current fiscal year has been challenging, with reduced workforce and intensified talent competition from GCCs. Upskilling in GenAI technology is crucial for the industry's future.

The resignation of Nilanjan Roy, CFO of Infosys, is not expected to significantly impact the company's operations as Jayesh Sanghrajka, a seasoned insider, will take over. The sudden exit has surprised the market, but experts believe Sanghrajka's experience will ensure a smooth transition. The Indian IT industry has seen numerous CXO-level changes this year, with Infosys, Wipro, and TCS experiencing several top-level exits. The trend is attributed to tougher demand environments and better opportunities elsewhere.

Wipro's recent restructuring, which integrated the chief growth office into Strategic Market Units, has yet to yield significant results in terms of large deal wins. The company's success will depend on macroeconomic improvements and its ability to secure more large outsourcing contracts. Despite the resignation of Chief Growth Officer Stephanie Trautman and other senior-level exits, experts believe these changes will not disrupt operations due to the strong leadership bench. Similar trends of senior-level exits have been observed in other major IT firms like Infosys and TCS, attributed to the tough demand environment.

Hiring by Global Capability Centres (GCCs) is expected to be subdued this financial year due to global cost pressures. While some segments within GCCs are still hiring, overall numbers are down compared to last year. GCCs are consolidating their workforce after significant post-pandemic hiring. Replacement hiring continues in GCCs, unlike many IT firms where headcount has declined. Major IT firms like Tata Consultancy Services, Infosys, HCL Tech, and Wipro have seen a net reduction in employees. The trend is expected to persist throughout the year with no signs of improvement.

Mergers and acquisitions in the engineering services sector are expected to increase as IT services firms, pure-play engineering services companies, and private equity funds seek inorganic growth opportunities amid a sluggish demand environment. Key drivers include realistic valuations and a slowdown in the broader technology market. Notable recent deals include Carlyle's acquisition of a significant minority stake in Quest Global for $500 million and HCL Tech's acquisition of ASAP Group for $279 million. The engineering services segment continues to outperform other IT verticals, driven by strong performance in manufacturing, travel, and automotive sectors.

Campus hiring for fresh engineering graduates in India is expected to drop by 15-20% in FY24 due to reduced opportunities. While TCS plans to hire around 40,000 freshers, other major IT firms like Infosys, Wipro, and HCL Technologies are uncertain about their hiring numbers. The hiring trend, which saw a record high in FY22, has been declining since the second half of FY23. Experts hope for an improvement in the second half of FY24 if market sentiment improves.

The July-September period saw a significant 36% annual growth in residential property sales, with around 1,20,280 units sold. Housing prices in the top eight cities rose by 8% year-on-year in the April-June period and are expected to remain firm due to festive demand and high input costs. ANAROCK reported double-digit price growth in the top seven cities, with Hyderabad seeing the highest increase at 18%. The Mumbai Metropolitan Region and Pune accounted for 51% of total sales in Q3 2023. The momentum in housing sales and new launches is expected to continue in the October-December quarter.

Hiring by top international IT firms in India, including Accenture, IBM, and Capgemini, has significantly decreased due to an uncertain global economic environment. Accenture plans to cut 19,000 jobs and will not provide pay hikes in India and Sri Lanka for 2023. Domestic IT firms are also experiencing involuntary attrition and conducting only need-based hiring. The top four Indian IT firms—Tata Consultancy Service, Infosys, HCL Tech, and Wipro—have collectively reduced their workforce by about 38,950 employees in the first half of the fiscal year.

Vizzhy, a company rooted in the Massachusetts Institute of Technology, is leveraging AI to create personalized metabolic signatures aimed at preventing chronic diseases. The company is set to launch India's first healthcare-based Gen AI, providing affordable preventive healthcare solutions. Vizzhy's approach includes genome and microbiome testing to create a personalized metabolic signature map, enabling predictive and preventive healthcare. The company is expanding its research centers globally and plans to collaborate with hospitals and healthcare systems in India. The AI-based platform, built by Indian engineers, aims to democratize access to advanced healthcare solutions.

The semiconductor industry is experiencing rapid growth globally, driven by geopolitical dynamics and strategic control over design, development, and manufacturing. Indian engineering solution company Cientra, led by CEO Anil Kempanna, is capitalizing on this growth despite global economic challenges. The company is well-positioned in the semiconductor, telecom, and automotive sectors, with a significant portion of its revenue coming from semiconductor-related activities. While the telecom sector faces a relative slowdown, the automotive industry is transitioning towards alternative energy vehicles, creating consultancy opportunities. Cientra's customer base is diverse, spanning major semiconductor and software companies worldwide, with a strong presence in Germany and the US. The company avoids exposure to China and focuses on government-owned companies in India. Cientra invests heavily in employee training and R&D, developing various IPs in hardware, automotive, and telecom sectors. The company remains optimistic about market recovery in 2024.

Large deals announced by Indian IT services providers and their global peers have not restored investor confidence in a near-term recovery of technology spending. Despite a healthy deal pipeline reported by top IT firms like Tata Consultancy Services, Infosys, Wipro, Accenture, and Cognizant, revenue growth forecasts remain subdued. Experts attribute this to a growing gap between bookings and actual revenue, with delayed ramp-ups and low book-to-bill ratios. Investors are closely monitoring the translation of these deals into revenue and management commentary on future ramp-ups.

Indian IT services companies are enhancing employee utilisation and reducing subcontractor dependence to protect operating margins amid slow revenue growth. Infosys, Wipro, and Tata Consultancy Services have all reported improvements in employee utilisation levels in the September quarter. The trend is expected to continue, with companies focusing on cost optimisation and internal project execution. Additionally, a depreciating rupee against the dollar is likely to support operating margins in the upcoming quarter.

India is increasingly becoming a global talent hub, providing 16% of the total global talent to the technology industry. Global enterprises are keen on hiring Indian talent but face legal challenges, which Employer of Record (EOR) companies like Rapid aim to solve. Rapid, founded by Navin Rungta, helps global firms hire Indian talent without compliance issues, offering services like payroll, taxes, and visa applications. The company is expanding its footprint and looking to raise capital for future growth. Factors such as the war in Ukraine and resistance to hiring from China are driving global firms to India. Rapid differentiates itself by supporting in-person working and offering customized policies, unlike its competitors. The company has seen strong demand and is planning to expand its services and team.

Hiring in the retail sector, particularly in e-commerce, remains robust due to strong domestic demand and festive sales. The demand recovery in rural regions is expected to drive further hiring, especially in tier-II and III cities. E-commerce giants like Flipkart and Amazon are projected to create a substantial number of gig jobs, with significant hiring already underway. Traditional domestic businesses are performing well, while the technology and startup sectors continue to lag in recruitment.

Indian IT firms are expected to show sluggish performance in the second quarter of FY24 despite securing several large deals. Vendor consolidation and low discretionary spending are key factors contributing to the subdued growth. Infosys, Tata Consultancy Services (TCS), and HCL Tech have all announced significant deals, but these are offset by losses in other contracts and a general weak demand environment. Experts predict growth rates to remain at 4-5 percent, with companies like Infosys already lowering their revenue growth forecasts for the year.

Indian IT firms are expected to maintain stable operating margins despite a slowdown in demand, driven by cost-cutting measures such as reducing headcount and improving employee utilization. Infosys, Tata Consultancy Services, and HCL Tech have all reported improvements in their operating margins for the second quarter, with initiatives like Project Maximus and automation capabilities playing key roles. Experts believe that these measures will help sustain margins even as revenue growth slows.

Accenture's guidance for FY24 indicates a challenging demand environment with a conservative growth outlook, particularly affecting Indian IT firms. The company forecasts a 2-5% revenue growth, with weak discretionary spending and slower decision-making due to macro uncertainties. This has led to a focus on larger deals while smaller deals are being deprioritized. The guidance also casts doubt on growth prospects for FY25. Indian IT firms like Infosys, TCS, and HCL Tech have secured large deals but face a bleak outlook for smaller digital deals. JM Financial Institutional Securities highlights the potential risks for the sector based on Accenture's guidance.

Demand for luxury housing is rising in major Indian cities like Bengaluru, Delhi-NCR, and Mumbai, driven by increased discretionary income, higher compensations for CXO-level executives in IT firms and startups, and a stable interest rate regime. A FICCI-ANAROCK survey indicates a growing preference for larger homes, particularly 3BHKs. Despite rising property prices, the trend towards bigger apartments continues, with significant demand for villas in Bengaluru. Companies like Puravankara, Prestige Developers, Brigade Enterprises, Sobha Ltd, RMZ Corp, and Embassy Group are launching luxury projects to cater to this demand.

The coliving sector is experiencing steady growth as corporate employees seek convenient and community-oriented living spaces. Boston Living, a Hyderabad-based coliving operator, plans to expand to Bengaluru and is developing a 1,000-bed boutique hotel at GMR airport in Hyderabad. Despite a hiring slowdown in the IT and startup sectors, existing staffers are driving demand. The company focuses on premium coliving facilities with extensive amenities and community events. Boston Living aims to increase its bed capacity to 2,000-2,500 in the coming years, funding expansion through internal accruals without external capital. The company has already met its revenue targets for FY24 and anticipates continued growth.

The technology industry in India has seen a significant reduction in hiring, with major IT firms cutting nearly 39,000 jobs in the first half of the fiscal year. Despite this, staffing firms like Diensten Tech predict a return to normal hiring levels within the next two quarters, driven by growth in the green industry and semiconductor space. The Global Capability Centres (GCCs) are also expected to continue hiring, with an estimated increase in the number of GCCs in India over the next five to six years. While the current hiring trend is low due to macroeconomic conditions, there is optimism for future job growth, particularly in AI, data science, cloud computing, and cybersecurity.

Generative AI is revolutionizing various sectors, including content marketing. Yarnit, an Indian startup, offers a generative AI-powered content marketing platform that provides high-quality, personalized content for enterprises. The company has seen strong adoption in India, the US, and the UK, and is planning to expand further. Yarnit focuses on content quality, a connected ecosystem, and real-time learning from industry data. The company has raised initial capital from angel investors and is looking to secure further funding from PE/VC investors to fuel its growth.

The competition for top-level executives among IT services companies has intensified in 2023, leading to legal disputes. Cognizant has been hiring senior executives from rivals Wipro and Infosys, prompting legal actions from these companies. The trend is driven by the competition for large deals and new CEOs taking over. With a challenging demand environment, executive poaching is expected to continue into 2024. Notable hires include Wipro's former CFO Jatin Dalal, who is now facing a lawsuit from Wipro. Senior executives are seeking better opportunities due to lower bonus payouts linked to company performance.

The technology sector in India is experiencing a significant slowdown in hiring, with the top four IT firms—Tata Consultancy Service, Infosys, HCL Tech, and Wipro—cutting their workforce by 38,950 employees in the first half of FY24. The trend is expected to continue, with many firms opting out of campus placements and delaying the onboarding of freshers. Experts attribute this to reduced technology spending by global enterprises and slow business growth. Infosys, for instance, has decided against campus hiring this year due to an existing bench strength of freshers. The overall sentiment in the industry remains cautious, with further headcount reductions anticipated.

India's real estate sector remains robust despite global economic challenges, driven by strong demand and rising salary levels. BCD Group, a zero-debt company, is experiencing significant growth across various segments, including luxury housing, senior living, and commercial tech parks. The company is also launching a Rs500 crore Alternate Investment Fund to address issues in stalled projects. BCD Group's current projects span 15 million sq ft, with plans to expand globally. The company's financial health and strategic initiatives position it well for future growth.

The IT consulting segment is experiencing a downturn due to reduced discretionary spending by clients, impacting both global and domestic IT service providers. Accenture reported a 2% decline in consulting revenue for the last quarter, while managed services grew by 10%. Indian companies like Tata Consultancy Services, Infosys, HCL Tech, and Wipro are also facing challenges as clients prioritize cost optimization over new technology investments. Experts predict that the consulting business will continue to struggle unless there is an uptick in digital deals.

India is striving for self-reliance in the semiconductor industry through various government schemes and support for startups. Semiksha, a deep technology company based in Karnataka, is a notable example, developing embedded products and working with major IT and engineering firms. The central and state governments are playing crucial roles in promoting the industry, with initiatives like the DLI Scheme and Chip to Startup Scheme. Semiksha plans to expand into IoT, robotics, and EV sectors, and is looking to raise capital to fund its growth. The company currently manufactures its chips in Taiwan but hopes to leverage upcoming local fabrication plants.

Electric Vehicles (EVs) are gaining traction in India, with significant growth in the two-wheeler and three-wheeler segments. Lohia Auto, a key player in this space, has seen substantial growth, particularly in the three-wheeler segment. CEO Ayush Lohia emphasizes the need for a long-term EV policy from the government to sustain this growth. Despite the rising adoption, challenges such as stagnant sales in recent months and the need for greater consumer awareness persist. Lohia Auto remains optimistic about future growth, driven by potential reductions in battery costs and a clear government roadmap.

Mid-tier IT firms like Birlasoft, Coforge, and ITC Infotech have shown significant improvements in performance following the appointment of new CEOs from larger firms. Birlasoft, under Angan Guha, has seen margin stability and robust deal wins. Coforge, led by Sudhir Singh, has achieved high revenue growth, and ITC Infotech, under Sudip Singh, has more than doubled its revenue. The trend of hiring leaders from large IT firms is expected to continue as mid-tier firms seek further growth. Tech Mahindra is also anticipated to perform well under its new CEO.

Investors are becoming more cautious about funding startups, introducing new clauses in term sheets that link investments to specific operational and financial milestones. This increased scrutiny is a response to the current state of the startup ecosystem, which has seen numerous business failures and governance issues. Indian startups are experiencing a severe funding winter, with a 77% drop in funding in the first seven months of 2023 compared to the same period last year. Despite the slowdown, high-quality deals continue to receive funding, with a focus on the quality of the founding team and business traction. Fund houses are also emphasizing corporate governance practices, including internal audits and detailed MIS reports.

Indian IT services companies may face delays in securing new outsourcing contracts from Canadian enterprises due to the ongoing diplomatic row between India and Canada. Experts believe that operational disruptions are unlikely as most Canada-based engineers are Persons of Indian Origin (PIOs) and are not affected by the visa suspension. The diplomatic spat, centered around the Khalistani issue, has led to concerns about its impact on trade and investment. Major Indian IT firms like Infosys, Wipro, and Tata Consultancy Services have significant operations in Canada, contributing 4-5% of their total revenues. If the diplomatic tensions persist, the Indian IT industry could face negative impacts, particularly in terms of visa processing and business environment.

Mphasis is experiencing growth challenges due to a slowdown in the financial services segment, with no near-term recovery expected. ICICI Securities notes that the company is focusing on expanding non-BFS verticals to drive growth. The weak growth in wallet share from companies in Blackstone's portfolio and the overall economic uncertainty are seen as significant dampeners. However, Mphasis' efforts in securing large deals and increasing the share of non-BFS verticals are viewed as positive steps. The broader Indian IT sector is also facing similar challenges in the BFSI vertical, particularly in the US market.

Hyderabad is emerging as a leading city for attracting new investments in Global Capability Centres (GCCs), surpassing Bengaluru. In the first half of 2023, Hyderabad saw the establishment of 23 new GCCs compared to Bengaluru's 13. Notable companies like Goldman Sachs, Lloyds Banking Group, State Street, FedEx, and Apollo Tyres have opened centres in Hyderabad. The city's growth is attributed to high-quality talent and world-class infrastructure, supported by educational institutions like ISB, IIIT, and BITS Pilani. Hyderabad's share of tech jobs in India has increased significantly, reflecting strong investor sentiment.

Indian IT firms are expected to offer minimal salary hikes this year, with increments around 5-6%, a significant drop from the previous years' substantial increases. TCS is the only major firm to announce increments, while others like Infosys, Wipro, and HCL Tech have yet to do so. Many mid-tier firms are skipping appraisals due to low demand and high wage costs. HCL Tech has deferred increments for junior and mid-level employees, while some mid-tier firms have managed to roll out hikes despite challenges.

The affordable housing segment in India is facing significant challenges due to rising land prices and changing consumer preferences. The share of affordable housing in the total supply has dropped from 26% in 2021 to 18% in Q3 2023. Experts attribute this decline to increased land prices, consolidation in the real estate sector, and a shift in buyer preferences towards mid-end and high-end properties. Major cities like NCR and MMR are seeing more traction in luxury segments, while affordable housing projects are now more common in the peripheries of cities like Chennai and Kolkata.

Hiring activity in the IT sector is expected to increase in the October-December quarter after a significant slowdown over the previous nine months. Despite the traditional lull in hiring during this period due to holidays and budget optimizations, there is optimism for a pickup in recruitment to fill numerous open positions and support new projects. The past year saw a reduction in workforce across startups and major tech firms, with Indian IT companies avoiding large-scale layoffs but not replacing employees lost to attrition. The 'big four' IT firms in India hired 66% fewer employees in FY23 compared to the previous year. Experts anticipate a resurgence in hiring from next year as the global technology industry shows signs of recovery.

Spoclearn, an upskilling platform in India, offers over 50 courses and plans to double this number in the near future. The company, co-founded by Bharath Kumar J, has seen growth despite the challenges of the pandemic and aims to expand its corporate partnerships and individual learner certifications. Spoclearn is profitable, self-funded, and is considering setting up physical learning centers. The demand for upskilling remains high in India, with technology slowdown and low hiring not significantly impacting the industry.

Indian IT services companies are securing large outsourcing contracts, which promise revenue growth in the coming quarters despite concerns over margin dilution and slow project ramp-ups. Infosys, Tata Consultancy Services, and HCL Tech have all announced significant deals recently, including partnerships with Liberty Global, Nest, Jaguar Land Rover, Verizon Business, Cloud Software Group, Elders, and Siemens AG. While these deals provide revenue growth prospects, margin pressures remain due to slow project ramp-ups and other operational challenges.

Large IT outsourcing contracts in emerging technologies face risks of termination as clients tighten budgets amid economic uncertainty. Infosys recently terminated a $1.5 billion AI deal, reflecting the challenges in securing large deals in new tech areas. Despite winning significant contracts, major Indian IT firms like Tata Consultancy Services and Wipro report low revenue growth, with clients hesitant to commit to large-scale projects. Experts suggest IT firms may avoid pursuing large deals in new technology areas due to these uncertainties.

Indian IT services companies are expected to see improved performance with a positive shift in enterprise sentiment and decision-making on technology spending. Large deals have been secured by India's top IT firms, including Infosys, TCS, and HCL Tech, with significant contracts from global enterprises like Liberty Global and Verizon Business. While the big firms show signs of a turnaround, the situation in the mid-tier IT services space remains uncertain.

The coworking space sector is expected to continue its growth in the latter half of the current financial year, with corporates favoring flexible office spaces over traditional leases. Despite a general slowdown in office space demand, coworking spaces are thriving, particularly in Pune, Bengaluru, and Hyderabad. Enzyme Office Space, a company managing over 10 lakh square feet, is expanding with new coworking facilities in Bengaluru. The hybrid work model and cost advantages are driving small firms, startups, and entrepreneurs towards coworking spaces. Real estate consultancy firm Anarock predicts a 15-20% growth in demand for flexible office spaces in the next 2-3 years, with actual demand potentially exceeding these forecasts.

Business Process Management (BPM) firms are facing increased pricing pressures due to a recessionary environment and sluggish demand. Global research firms report that clients are resisting price hikes for outsourced contracts amid inflationary pressures. The Everest Group notes that the US, India, and the Philippines will likely see pricing pressures, reversing the trend of rising prices due to demand, talent shortages, and inflation. BPM firms are responding by adopting generative AI-powered solutions and outcome-based pricing to improve margins. Genpact's CEO NV Tyagarajan has indicated the use of Generative AI to enhance margins and create client use cases. WNS is focusing on non-linear pricing models to grow revenue without increasing headcount, aiming for higher revenue per employee and improved margins.

The telecom and media verticals in the IT industry are experiencing a significant slowdown, with low spending expected to continue into 2024 due to macroeconomic uncertainties. While other sectors like financial services and healthcare show signs of recovery, the communication vertical remains under pressure. Major IT firms such as Accenture, Infosys, Tata Consultancy Services, and Tech Mahindra have reported declines in their communication and media segments. Analysts attribute this to previous heavy investments in 5G technologies and reduced discretionary spending.

Cropin Technology has partnered with Amazon Web Services (AWS) India to develop new solutions aimed at enhancing service delivery within the agriculture ecosystem. This collaboration will enable Cropin to build a comprehensive data architecture that aggregates global farmland data and climate intelligence. The initiative aims to provide decision intelligence to governments, development agencies, and agri-businesses to ensure food security. AWS will contribute technical expertise and advanced computer services to support Cropin's platform, showcasing the potential of cloud technology to drive social and environmental impact.

Nearly half of the organizations believe generative AI can enhance security against rising cyber threats. Dell Technologies' ‘Global Data Protection Index (GDPI) Cyber Resiliency Multicloud Edition’ report, based on a survey excluding China, indicates significant investment in AI for defense against attacks. The report also highlights concerns about the generation of large data volumes by generative AI, data security in multi-cloud environments, and the trend of enterprises seeking external support to improve cyber resiliency.