The Indian IT Services industry is currently navigating a period of global demand uncertainty and changing delivery models. Although this is creating growth pressures, ICRA maintains a Stable outlook on the industry. The outlook is supported by the well-established business position of Indian IT services companies in the global IT space, controlled wage costs, and stable attrition rates, which are expected to enable the industry to maintain a steady margin profile.

• Revenue growth in USD terms for ICRA’s sample set of Indian IT services companies is expected to be a modest 2-3% in FY2026 (against 3.6% in FY2025) owing to persistent macroeconomic headwinds in key markets, impacting discretionary IT spends by companies.
• The US and Europe together account for 80-90% of the industry’s revenues and growth in both these markets has moderated over the past few quarters due to persistent macroeconomic headwinds.

Source: ISG, ICRA Research, Value in USD Billion