H1B restriction fears, muted Q3 earning forecast hurting stocks of IT firms

Pricing pressures on traditional services, shift towards digitisation to impact operating margins

Major information technology (IT) services companies  such as Tata Consultancy Services (TCS), Wipro, Infosys and HCL are expected to see a subdued December quarter.
It is traditionally a weaker season but also comes amidst big shifts in technology and the market. Pricing pressure on traditional services, slower renewal of projects and shifts at clients towards digital transformation that require engineers onsite and currency fluctuations are expected to impact the operating margin.

“The top-tier growth in constant currency will range between minus one per cent and 3.1 per cent on a sequential basis and 6.6 per cent to 13.1 per