Tech outlook: Indian IT firms face margin heat as AI impact meets macro slowdown; companies delay hikes, cut costs and chase deal conversions in negotiator’s market

Indian IT firms are facing margin pressures due to macroeconomic headwinds and AI-driven productivity gains. Companies are implementing cost control measures like deferred pay hikes to sustain profitability amidst weak deal momentum. Experts anticipate continued margin challenges, even with potential revenue improvements, as clients demand more value and AI pricing models evolve.

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