Is the Indian IT Sector Gradually Recovering with Improved Deal Wins?
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Synopsis
New Delhi reports a gradual recovery in the Indian IT sector, with improved deal wins and a stable revenue outlook. Despite a slower growth rate compared to global counterparts, business sentiment is also on the rise. Discover what this means for the future of India's IT landscape.
Key Takeaways
- Gradual recovery in the Indian IT sector.
- Strong deal wins signal positive future prospects.
- Business sentiment is improving.
- Indian firms lag behind global peers in revenue growth.
- BFSI sector leads with significant growth.
New Delhi, Nov 28 (NationPress) The IT sector in India is beginning to exhibit early indications of a gradual recovery, driven by enhanced deal wins and a stabilizing revenue outlook, according to a recent report published.
The report by BNP Paribas India reveals that while Indian IT firms have continued to trail behind their global counterparts in revenue growth during the September 2025 quarter, their success in securing new deals is robust, which bodes well for the upcoming quarters.
The global IT services market registered a 3.8% year-on-year revenue increase in USD during the September quarter, which is a slight decrease from the 4.3% growth seen in the June quarter.
In contrast, Indian IT companies experienced a modest growth of only 1.2% in constant currency.
This slower growth rate can be attributed to the stronger performances of global players like Accenture, EPAM, and ADP, in addition to the euro’s appreciation against the dollar.
Among various sectors, BFSI led the revenue growth with a 7.9% year-on-year increase, while sectors such as retail, manufacturing, and energy also saw positive results.
The communications sector, however, remained the weakest performer. Regionally, revenue from the Americas rose by 4%, showing a slight slowdown, while Europe demonstrated a stronger recovery with a 4.3% growth.
This report, spearheaded by analyst Kumar Rakesh, is based on a comprehensive analysis of quarterly results from 24 major IT services companies spanning India, the Americas, and Europe.
The sample includes 13 Indian firms and reflects significant global industry trends.
Despite the slower revenue growth, the report indicates a positive shift in business sentiment.
The firm’s outlook index, which is derived from management feedback, indicates that project delays reached a low point in the June quarter, and firms are now gaining clearer visibility on deal signings.
Furthermore, profit margins have seen modest improvement due to increased productivity, better resource utilization, and reduced attrition rates.
While headcount has seen a slight rise, productivity improvements have mitigated cost pressures.
The report also highlights that Indian IT firms excelled over their global peers in the total contract value (TCV) of deals secured during the quarter.
Trends of vendor consolidation continue, with major clients contributing a larger share of revenue across leading firms.
Point of View
I see the gradual recovery of the Indian IT sector as a promising sign for both businesses and employees. The ability to secure new deals indicates resilience, and with improving business sentiment, we can expect positive movement in the industry moving forward.
NationPress
28/11/2025
Frequently Asked Questions
What does the recent report say about the Indian IT sector's recovery?
The report indicates that the Indian IT sector is showing signs of gradual recovery, with improved deal wins and a stabilizing revenue outlook.
How does Indian IT growth compare to global peers?
While Indian IT firms grew only 1.2% in constant currency, global players like Accenture and EPAM reported stronger performances.
Which sectors contributed to the revenue growth?
The BFSI sector led with 7.9% year-on-year growth, while retail, manufacturing, and energy sectors also performed well.
What is the significance of the total contract value (TCV)?
Indian IT companies outperformed global peers in TCV of deals signed, highlighting their competitive edge in securing contracts.
What are the key indicators of improving business sentiment?
The report suggests that project delays have bottomed out, and companies are gaining better visibility on deal signings.
