India IT Firms Face Muted Q2 Growth as AI Pressures Services

India’s big technology service companies may grow only a little in the July-to-September quarter.

Many customers are being careful about spending and take longer to approve projects.

Companies have won work, but it can take time before that work earns revenue.

Their profits are being squeezed by higher wages, spending on AI and customers asking for lower prices.

AI can also do some work that people used to do, especially in service desks and managed services.

Some analysts think smaller technology firms will still grow faster than the biggest ones.

Analysts disagree about which regions are strongest: one sees the US as weak, while another sees it as strong.

Overall, they expect a slow market rather than a full recovery.