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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Indian IT companies and professionals have found a new way after the Donald Trump administration paid 1 lakh dollars (about 88 lakh rupees) of the H-1B visa lump sum fees. Now the focus is fast moving towards L-1 visa, which is currently being considered a cheaper and convenient option than H-1B.

Why the trend towards L-1 visa is moving
Due to the increased cost of H-1B, it has become difficult for companies to send foreign employees to America. At the same time, there is no limit to recruitment on L-1 visa and it allows companies to transfer its employees from abroad. With this, Indian companies can easily send their already working employees to America.

What do experts have to say?
Experts say that L-1 visa is not a completely easy solution. For this, the employee must have to work abroad with the company at least one year. This means that newly recruited candidates cannot be sent directly to America on L-1. Apart from this, the investigation of American officials on this visa is also tightened.

Investigation will increase, yet companies ready
Legal experts say that as companies increase the use of L-1 to avoid H-1B, the US administration can also monitor and tighten this category. This may include more documents, high rejection rates and additional rules. Despite this, companies are considering it as the only practical path.

New route to Indian IT sector
The uncertainty and concern over the increase of H-1B fees has forced Indian companies to find alternative measures to send their employees to America. In such a situation, L-1 visa is proving to be a new jugaad for the Indian IT sector, even if many challenges are associated with it.

The White House on Saturday released a ‘factories’ and supported President Donald Trump’s new and controversial decision. Under this, a huge fee of US $ 1 lakh (about 88 lakh rupees) will be charged on the new H-1B visa petitions. The administration says that the move aims to save American employees from replacement from foreigners and secure American employment.

According to the factory, the share of employees working in the IT sector on H-1B visa was 32% in 2003, which has increased to more than 65% in recent years. At the same time, unemployment rate among American students studying computer science and computer engineering has reached 6.1% and 7.5%, which is double the graduates of other subjects. Between 2000 and 2019, the number of foreign Stem (Science, Technology, Engineering and Maths) was doubled, while the total stem employment increased by just 44.5%.

This year a large scale trimmed

The White House also mentioned some companies, which trimmed thousands of American employees, while the recruitment of H-1B employees increased. A company was approved 5,189 H-1B visas in 2025, but this year it fired 16,000 American employees. The second company received 1,698 H-1B approval, but removed 2,400 US employees in July. A third company has trimmed 27,000 US employees since 2022, while 25,075 H-1B visas have been approved.

The White House said that President Trump has been given a mandate to the American public to give priority to American workers and they are constantly working on it. According to him, all the new jobs have been received to American -born employees since Trump took over, while most of the employment went to foreign employees during Biden.

According to the latest data, 72% of Indians were found in around 4 lakh H-1B visas issued between October 2022 and September 2023. Following this order of Trump, anxiety and nervousness spread among Indians living in America. Many people canceled the plan to go to India at the last moment, while many people present in India started trying to return to America.

Fees will be applicable only to new petitions

However, the administration later made it clear that this new fee of $ 1 million will be applicable only to new applications. Older visa holders will not have to pay it and those who are already out of America will not have to pay any additional fee on re -entry. This rule will be applicable from September 21 and the petitions filed before it will not be affected by it.

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Tata Consultancy Services (TCS), India’s largest IT service company, has announced a large number of employees on Sunday (July 27, 2025). Tata Consultancy Services issued a statement saying that the company will cut 2 percent from its total number of employees in the financial year 2026. This trimming will mainly affect the employees of middle and senior management in the company.

The company released the official statement

The company said in its official statement that Tata Consultancy Services (TCS) is entering new markets, investing in new techniques as per the demand of time and implementing the use of Artificial Intelligence (AI) in the company. Along with this, the company is also giving training again to all its employees and is re -appointing them. However, jobs of about 12,200 people will be cut during this entire process.

Changes are being made in full caution and planned manner

TCS said, “This entire change process is being done with great care and in a planned manner, so that this change does not affect our customer services.” The company said, “There is a $ 283 billion IT area in India, which is currently struggling to cut non-essential technical expenses by customer companies due to weak demand, constantly increasing inflation and uncertainties on the United States business policies.”

The delay in starting new projects by customer companies- K.K. Kritivasan

At the same time, the Chief Executive Officer of Tata Consultancy Services (CEO) K.K. Kritivasan had said in this month that there is a delay in making decisions on behalf of customer companies and starting any new projects.

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Intel (Intel), one of the world’s largest chip -making companies, is going to sort 15 to 20 percent of the employees in its manufacturing unit since July 2025. This decision can lead to jobs of more than 10,000 people. This retrenchment is considered to be one of the biggest in the history of the company.

Factory and research team will affect

This trimming will affect Intel’s Foundry Division, which includes 15 fab plants of the company. This includes factory technicians to researchers who designed new chips. That is, the trimming can range from the ground level to the high technical team.

Neither Byout, nor Retirement Scheme

Like last time, this time Intel will not give any option of voluntary retirement or byout. Whose performance has been weak, or which is no longer left, his job can go. The company says that this decision is very difficult, but it is necessary to see the current financial conditions.

Strict strategy of new CEO

CEOs who came in March 2025 are bringing major changes to Lip-Bo Tan Company. He believes that more and better work can be done than less people. In April, he announced a reduction of 20 percent of the employees in the entire Intel and now this action is starting in the foundry division.

Three -time trim, in a year

In August 2024, Intel finished 15,000 jobs.

In the beginning of 2025, there was a plan to remove 20% and employees.

And now the third time is being trimmed, which is happening at the factory level.

All these Chhatanas are being done to rescue the company from losses and bring them to the path of benefit again.

Who will be spared, who is not?

Those who are engaged in advance technology, lithography machines, and critical research in the technical team are not at the moment. But those whose machines have now been replaced or whose projects have been closed, may have to lose their jobs.

Why do you have to do such a big trimming?

Intel incurred a loss of $ 821 million in the first quarter of 2025.

A subsidy of $ 7.9 billion from the US government is stuck.

In AI, chips and data sectors, companies like NVIDIA are getting a tough competition.

For all these reasons, Intel needs to reduce spending and make fast decisions.

Will Intel rises again?

Intel’s decision is harsh, but the company’s compulsion is also reflected. This will affect thousands of families. Now the question is whether this trimming will be able to bring the company on the path of profit again, or will it spoil the position of the company further? This coming time will tell only.

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Infosys layoff: Veteran IT company Infosys has fired 240 entry level employees. These trainee workers could not pass the internal test. The company gave this information on 18 April. Earlier in February, the company trimmed more than 300 trainee employees. However, Infosys has given these youth a chance to learn free skills for free in NIIT and UPGRAD so that they can do something good for the future.

Company estimated low revenue growth

The company took this step in view of the current status of the market as the company has estimated revenue growth for the current financial year between 0 to 3 percent. This is giving signs of recession in the sector. Actually, clients are reducing the cost cuts in large markets like America and Europe. Due to this, Infosys, a company providing IT service, is getting less contracts.

Company sent email to employees

In the email sent to the employees on April 18, the company wrote, “Apart from the announcement of the results of your final assessment effort, you are being informed that you have not met the merit criteria in the ‘Generic Foundation Training Program’ despite additional preparation time, dout clearing sessions, many mock assessments and three efforts. As a result, you will not be able to continue your journey for the trainee program. ”

Infosys sponsored training program

This email further wrote, “We are arranging professional outplacement services for you to help you find opportunities outside Infosys. You can apply. If you want to enhance your IT skills, you are also being provided with Infosys Sponsored IT Fundamentals Training Program so that your IT career journey can be further supported.

Apart from this, trainee employees will get a one -month salary, accommodation, Mysore Training Center to Bangalore or their hometown.

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