## IT Industry Sees Decline in Headcount and Profit Amidst Global Uncertainty
India's IT industry, a powerhouse valued at USD 254 billion, has been facing challenges due to global macroeconomic uncertainties and geopolitical tensions. This has led to a decline in headcount and profits for major IT companies.
Wipro reported a 7.8% year-on-year decline in its consolidated net profit for the March quarter, with a headcount reduction of 24,516 during the financial year. This decline was attributed to the market and demand environment, as well as operational efficiency measures.
Infosys, India's second-largest IT exporter, also saw a decline in headcount by 25,994 employees. The company attributed this to improved utilization and reduced attrition. Infosys also reported a weak revenue growth forecast for FY25, raising concerns about the impact of global uncertainty on client spending.
TCS, the largest IT services company in India, also saw a decline in headcount by 13,249 employees. However, the company reported a 9% growth in net profit for the January-March quarter of FY24.
The decline in headcount and profits across the IT industry reflects the cautious approach of clients towards IT spending in the current uncertain economic climate. This trend is likely to continue in the near future, with companies focusing on operational efficiency and cost optimization.