Will IT majors follow TCS in giving cash back?

The rational for holding high levels of cash was the need to fund inorganic growth

Tata Consultancy Services’ (TCS) decision to announce a share buyback raises two questions. First, will other Indian IT firms who are sitting on massive piles of cash follow suit? Second, will this be a one-off event or does it mark the start of a new trend where cash rich IT companies give money back to shareholders?

Traditionally, Indian IT companies have maintained high levels of cash. At the end of the third quarter of FY17, Infosys had a cash balance of Rs 26,113 crore. It also had investments to the tune of Rs 9,872 crore. Similarly, HCL technologies had a