Margin pressure

Next few quarters will be tough for IT sector

As the rupee trends down, can the IT industry ride high on its overseas income? Or will a combination of rising costs, skill shortages, and the threat of a possible global recession derail growth? The first quarter results and associated management guidance indicate squeezed margins. While companies are confident about “deal-wins”, they all complained about margin pressures and elevated attrition. The Nifty IT index has seen a 30 per cent correction since January 2022, which is much worse than the almost 6 per cent fall in Nifty. In earlier periods, when the rupee had been under pressure, the IT industry