IT spending: Clients will remain cautious in FY25, says Fitch Ratings

Given the economic uncertainties and the timing of interest rate cuts, Fitch Ratings expects that clients will remain cautious this fiscal year and that the Indian information technology (IT) services sector will continue to be affected by subdued discretionary IT spending.

In its Indian IT Services outlook, Fitch Ratings says Tata Consultancy Services (TCS), Wipro and HCL Tech will have rating headroom because of robust free cash flow margins and a strong net cash position.