• IT companies like TCS, Infosys, and Wipro face margin pressures due to sluggish demand, excess capacity, and AI investments.
• A Gartner study indicates widespread caution in achieving growth targets, with enterprises pausing new IT spending due to economic and geopolitical risks.
• Experts suggest companies need to focus on cost control, service productization, and AI-powered operational strategies to improve margins, as traditional cost optimization methods are exhausted.
• HCL Tech's margins dropped, and TCS's operating margin also declined year-on-year.
• Tech Mahindra, however, improved its margins.
