India’s top four IT services companies – Infosys, Tata Consulting Services (TCS), Wipro, and HCL Tech – have expressed concerns about the impact of the US’s new tariffs regime on their business. Despite this, they are optimistic about the long-term opportunities that may arise from the changes. Wipro CEO Srinivas Pallia cited an example of a client putting a large SAP program on pause due to uncertainty about tariffs, which has impacted the company’s revenue growth momentum. Infosys CEO Salil Parekh also noted that the retail sector has been impacted by economic uncertainty and lower consumer spending, leading to tightened client budgets and increased caution.
TCS CEO K Krithivasan reported that the company’s consumer group has seen heightened caution and delays in discretionary projects, particularly in the US. HCL CEO C Vijayakumar said that while his company has not seen a specific impact from tariffs yet, he expects consumer and manufacturing companies to be the first to feel the effects. However, he believes that tariffs will drive customers to reduce costs, creating opportunities for HCL to help them increase efficiency using technology such as generative AI.
Despite the concerns, all four companies have healthy balance sheets and reported significant revenue growth for the financial year 2025. TCS achieved 3.8% annual growth, with revenue of $30.18 billion, while Infosys delivered 4.2% growth, with revenue of $19.28 billion. HCL grew 4.3% to $13.84 billion, and Wipro’s revenue slipped 0.7% to $10.7 billion. The companies are profitable, with margins hovering around 20%.
The CEOs of the companies believe that while tariffs may lead to short-term uncertainty and caution, they will ultimately drive businesses to invest in technology to reduce costs and increase efficiency. HCL’s CEO said that the focus on using generative AI to drive high efficiency will become a major theme in technology strategy conversations. The companies are positioning themselves to take advantage of these opportunities, with strong pipelines and a focus on helping clients navigate the changing global trade landscape. Overall, while the US tariffs regime presents challenges for India’s top IT services companies, they are well-placed to adapt and thrive in the long term.