Indian IT firms see shift away from discretionary work as RoI-led projects gain pace

India’s top IT services firms say clients are increasingly approving technology projects based on return on investment rather than discretionary budgets. Infosys, Tata Consultancy Services (TCS) and HCLTech said artificial intelligence and automation are helping revive modernisation and transformation projects that were earlier put on hold, even as overall demand remains tight.

HCLTech said it delivered revenue growth in the December quarter despite what it described as a constrained demand environment, supported by AI-powered solutions and large-scale transformation programmes.