Sunday, July 20, 2025

IT companies tighten belt as AI, macro headwinds squeeze biz margins

The fiscal first quarter showed companies are stretching all internal levers aggressively to protect profits amid slowing large-deal momentum. This includes lowering selling, general and administrative expenses (SG&A) costs, delaying pay hikes, and rejigging bench policies. Analysts expect the trend to continue through the fiscal second half as the IT sector is turning into a "negotiator's market".

from Tech-Economic Times
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