Even as top Indian IT players remain unclear regarding when tech spends will return in key markets of North America and Western Europe, the deal pipeline for future projects continues to remain robust. According to data provided by Care Edge, the top four IT firms kicked off the seasonally weak Q1FY25 with deal wins culminating at $15.6 billion. Top 4 players, TCS, Infosys, HCL Tech and Wipro added $8.3 billion, $4.1 billion, $1.96 billion and $ 1.2 billion to their order book respectively.
Though FY24 was a slow year for IT majors in project implementation, the IT players were able to keep a healthy pipeline of projects for the future. As a result, the top four Indian IT players continued to report ever growing order books on a quarterly basis. In Q4FY24, the top four IT companies reported a whopping $21.2 billion worth of deal wins, concluding the financial year on an optimistic note.
FY25 prospects
FY25 is projected to be better for the Indian IT industry since they expect tech spends to return soon. However, as uncertainties such as the US election loom, most firms, while signing deals for tech transformation projects, continue to hold back on their implementation even now.
Speaking to analysts, TCS CEO K Krithivasan said,“The point I keep mentioning is we don’t see a material change in customer sentiment between last quarter and this quarter. They continue to validate projects, and cost optimisation gets prioritised over new discretionary projects if they are not able to see a short-term ROI.”
Srini Pallia, CEO of Wipro echoed Krithivasan’s sentiments: “In Q1 (FY25), we did not see a significant shift in the demand environment. Clients remain cautious and our discretionary spending continues to be muted. Our IT services revenue for Q1 was $2.63 billion, reflecting a sequential decrease of 1% in constant currency.”
As IT firms begin the fiscal year on an optimistic note, it appears to be business as usual, with a steady project pipeline on a year-on-year basis. In Q1FY24, according to Care data, the top four IT firms had secured deal wins worth $15.3 billion, similar to the numbers that they have secured this year in Q1FY25.