HSBC Global Research Report on It Industry performance: The Indian IT industry is currently going through a dull phase. The recent results of major IT companies in FY 2025-26 indicate the weak growth. However, due to improvement in major export markets and adopting new technology, the situation is expected to improve in FY 2026-27.

Performance of IT giant companies

According to HSBC Global Research, the discretionary expenses of customers in the near future will remain weak. Demand is under pressure from challenges such as global economic uncertainty, customer cost cut and delay in decision making. Apart from this, geopolitical tension, supply chain problems and industry-specific vigilance (such as BFSI and Automobile Sector) projects are postponed.

Legendary companies like TCS, Infosys and HCLTech have shown strong booking and deals pipelines in the first quarter of FY 2025-26. Despite this, the estimate of revenue growth of the whole year is limited to only 1-5 percent. The performance of the NSE IT index in the last one year has been weaker than the widespread Indian market, which reflects the vigilance of investors.

future prospects

Despite the challenging situation, there is a possibility of slight improvement in 2026-27. When the comprehensive economic situation in the US and Europe is stable, AI based projects and digital transformations may increase demand for IT companies. With this, additional improvement of 2-3 percent in the revenue growth of Indian IT services is considered possible.

Significantly, after the arrival of AI, there has been a tremendous trimming in IT companies in recent months. The process of removing this employees is still not stopped. In such a situation, it is believed that after the arrival of AI in future and maximum use of it, people working in this sector can create a situation of uncertainty.

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US President Donald Trump has increased the difficulties for India’s IT professionals by increasing the H1B visa fees. Now Indians will have to spend 1 lakh dollars (about 88 lakh rupees) for H1B visa. This decision has made the dream of working in America expensive and concern has increased in India’s IT sector and startups.

What did the Trump administration say?

The Trump administration says that the new ‘Gold Card’ option will help America bring the most efficient professional directly. He argues that the misuse of H1B visa is becoming a threat to American jobs. According to the White House data, in 2003, H1B professionals had 32% IT jobs, which would exceed 65% by 2025.

The new visa fees will think twice before going to the Indian professional America. Experts say that this is both challenge and opportunity for India. Many companies have now reduced their dependence on H1B visas and are increasing recruitment at the local level.

How will India benefit?

Experts in the IT industry believe that the new fees will be forced to return home to the Indian talent working in America. This will increase the flow of skill, experience and capital in India. According to Vivek Wadhwa, CEO of Vionix Biosciences, this will be a financial loss for America but India will benefit.

It is time for the Government of India and companies to increase local opportunities and establish India as a global tech hub. Experts believe that ‘American Dream’ in America will be difficult now, but India will get the benefit in the long time. This change will completely change the scenario of global IT talent and Indian professionals will explore their career and business options under new circumstances.

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