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The Covid-19 pandemic drastically changed the way we work, with <keyword id="20665553" type="General" weightage="20" keywordseo="remote-work" source="keywords">remote work</keyword> quickly becoming the new normal. Employees across the globe adapted to working from home, enjoying newfound flexibility and a better <keyword id="19901232" type="General" weightage="20" keywordseo="work-life-balance" source="keywords">work-life balance</keyword>. And for a long time, we all thought that this was the new world and going to the office every day would be a thing of the past. <br /><br />However, as pandemic restrictions eased, many companies began rolling back these remote policies, pushing employees to return to the office. Tech giant <keyword id="19904608" type="General" weightage="100" keywordseo="Amazon" source="keywords" meta.keywordsubtype="org" meta.entityname="Amazon" meta.hostid="261" meta.entityid="Amazon">Amazon</keyword> recently ended remote work for its employees and told them to come to office five days a week, just like how it used to be before the pandemic. Amazon CEO Andy Jassy, in a blog post, said that working from offices has its benefits and therefore all employees will have to start coming to work the entire week. He added that even though they will permit work from home in case of emergencies (taking care of your sick kid, running emergency errands etc), remote work will no longer be the norm. <br /><br /><h2>Companies are calling employees back to offices</h2>Amazon isn’t the only company that has implemented the <keyword id="20007258" type="General" weightage="20" keywordseo="rto" source="keywords">RTO</keyword> (<keyword id="20408795" type="General" weightage="20" keywordseo="return-to-office" source="keywords">return to office</keyword>) mandate. Companies like <keyword id="19945574" type="General" weightage="20" keywordseo="Wipro" source="keywords" meta.keywordsubtype="org" meta.entityname="Wipro" meta.hostid="261" meta.entityid="Wipro">Wipro</keyword>, TCS, X (earlier called Twitter) and Infosys also require employees to be there in office for at least three days a week. While X boss <keyword id="19903807" type="General" weightage="20" keywordseo="Elon-Musk" source="keywords">Elon Musk</keyword> had once asked those seeking work from home to “get off of their moral high horse,” Infosys CEO N. R. Narayana Murthy had made headlines for saying that workers in India should work 70 hours per week. <br /><br />In wake of Amazon’s recent RTO mandate, many young professionals are reacting strongly on the internet. While some feel that the RTO mandate will hamper their productivity, others feel that it is simply unnecessary. And then there are also some people who think that this is a good decision. Let us take a look at how people are reacting on being called back to offices. <br /><br /><h2>How are people reacting?</h2>Social media sites like Reddit, X, and LinkedIn are full of reactions on the RTO mandate. Many employees feel that this will increase their cost and time spent on commute. <br /><br />Amazon’s recent decision to bring its employees back to offices has not sat well with many, especially those accustomed to the <keyword id="20445439" type="General" weightage="20" keywordseo="hybrid-work-model" source="keywords">hybrid work model</keyword>. On LinkedIn, Samrat Bhardwaj, who has previously interned with Amazon India, questioned the rationale behind the shift, asking whether the company truly considered employee well-being or was more focused on its own benefits.<br /><br />He also voiced concerns over the increased cost in case employees think of moving closer to tech hubs. He also added that if people start living at a distance from tech parks, rent will be lower, but you'll be wasting a lot of time to and fro from the office every day. <br /><br />On the other hand, Erin Mantz, a former Meta and Amazon employee, pointed out the stark difference between previous work norms and the flexibility of today's workforce in a LinkedIn post. <br /><br />“Gen Xers, for decades, used to have to go in every day... no working from home, no midday walks or being home for the dishwasher repairman,” she said, reflecting on how work-life balance has evolved.<br /><br />She concluded that the shift back to in-office work might not align with modern expectations, suggesting that today’s workforce has experienced a better way of working.<br /><br /><h2>“Working in the parking lot isn’t a bad idea”</h2>People aren’t just concerned about the increased cost and wastage of time in commute. Some also pointed out the irony of commuting to the office only to continue working in their cars due to a lack of proper space and resources. <br /><br />One Reddit user said, “Genuinely had no idea how bad RTO would be until it hit. I'm as unproductive as ever and half my work is done in the parking lot at this point for these exact reasons. Going back to the office isn't the end of the world, but when there's zero space or even disability accommodation for the employees? Unacceptable, especially considering the ones who usually enforce the arrangements all have their own private offices with the best gear their department offers.”<br /><br />Another user, Oracle-2050, quipped that working from their car was a makeshift solution, noting, "At least I can attend Teams meetings and make phone calls." <br /><br />The absurdity of the situation was highlighted by yet another commenter who sarcastically remarked, “Only in clown world would a worker drive to the office in order to do work in their car.” <br /><br />Another user pointed out that the decision-makers pushing these mandates “all have their own private offices with the best gear their department offers,” leaving regular employees to struggle in far less conducive work environments. <br /><br /><h2>The “Fake work” problem<br /></h2><br />Annie Dean, who earlier used to work as Director of Remote Work at Facebook, took a critical stance on LinkedIn, highlighting that return-to-office mandates don’t address the core problem which is “Fake work.” <br /><br />This term, popularised by Airbnb’s Brian Chesky, refers to tasks that feel like work but don’t actually create value for the business. <br /><br />Dean explained in her post that employees are drowning in endless meetings and messages, which detract from productivity. She argued that instead of mandating office attendance, companies like Amazon should focus on “pioneering new, more efficient modes of work.”<br /><br />This argument has resonated with many on X as well, where employees have expressed frustration over the return-to-office mandates being viewed as a quick fix. One Twitter/X user remarked that "commuting to do the same virtual meetings in person isn’t solving anything," while others echoed that the core problem lies in work structures, not location.<br /><br />Here are some other reactions on X:<br /><div type="image" title="negative reactions" msid="113528739" hostid="261" sizebytes="64721"></div><br /><h2>A quiet layoff strategy?<br /></h2><br />Yet another take on the RTO mandate comes from Jennifer DeLorenzo, a former senior recruiter at Pinterest. She suggested that the move feels like a “quiet layoff strategy.” <br /><br />According to her, by mandating full-time office attendance, companies may be hoping for a wave of resignations without having to deal with the negative press of formal layoffs. “This tactic allows them to reduce headcount while avoiding the negative optics of layoffs,” DeLorenzo wrote on LinkedIn, adding that it may backfire as hiring becomes challenging again when the economy shifts.<br /><br />Many others seemed to agree with her view. On Reddit too, there are many people talking about how companies might be carrying out soft layoffs by implementing an RTO mandate.<br /><br />Her comments tapped into a broader conversation on how companies may be using return-to-office mandates to indirectly reduce their workforce. Other social media users pointed out similar trends across industries, where companies tighten office attendance policies to nudge employees toward leaving voluntarily.<br /><br /><h2>Some mixed reactions too<br /></h2><br />While the return-to-office mandates are frustrating for many, not all reactions are negative. Some employees, particularly newer hires, see value in the traditional office setting. <br /><br />Bhardwaj, for example, also noted that going to the office is beneficial for freshers who want to learn. “I do believe that going to the office makes you learn a lot as freshers,” he wrote in his post, suggesting that for those early in their careers, the in-person experience might be crucial for growth and networking.<br /><br />Some users on X too seemed to be in support of this mandate. <br /><br />Here’s a look:<br /><div type="image" title="mixed-reactions" msid="113528718" hostid="261" sizebytes="77770"></div><br />This duality reflects the ongoing debate around the future of work. On one hand, companies like Amazon, Google, and Meta are focusing on building stronger in-office teams, believing that physical presence fosters better collaboration, innovation, and mentoring. On the other hand, employees, especially those who experienced the benefits of remote work during the pandemic, are pushing back against these mandates, valuing the flexibility and improved work-life balance that working from home provides.<br /><br />As companies continue to adjust their RTO policies, the tension between employee expectations and corporate strategies is likely to persist. However, one thing is clear — the future of work is still being negotiated, and both sides are making their voices heard across the internet.<br /><br /><br />

'I'm unproductive, this is not the real solution': Internet reacts as Amazon, Wipro and others call employees back to office

<ul><li>Wipro announced seven major deal wins in the past 12 months in the more than $100 million category.</li><li>The IT services major also suggested that it is steady on the path of $10 billion annual revenue run rate.</li><li>Wipro also revealed that it now has the highest number of large clients yet.</li></ul>Wipro’s management guidance for the March quarter is that the revenue from its IT services business to grow 2-4%. That’s better than the 1.9% growth clocked in the December quarter.<br /><br />Since companies like Wipro, TCS, and Infosys export software, and earn in dollars, pounds or euros, they report growth in constant currency terms, which is adjusted for foreign exchange fluctuations.<br /><br />Wipro ADRs (American Depository Receipts) were down by 1.5% as of 5:30 p.m., today (January 12).<br /><br />In its exchange filing, <keyword id="597306" type="General" weightage="20" keywordseo="wipro-ceo" source="Orion">Wipro CEO</keyword> and Managing Director Thierry Delaporte said that the company added seven new customers, each bringing in revenues of over $100 million, in the past 12 months, the highest yet.<br /><br />“We are also excited to have completed the acquisitions of Edgile and LeanSwift Solutions in the quarter, both of which will add to our capabilities significantly,” Delaporte added.<br /><br /><table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars<br /><br /></td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dec-21<br /><br /></td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sept-21<br /><br /></td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Performance<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IT services revenue<br /><br /></td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$2.66 billion<br /><br /></td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$2.61 billion<br /><br /></td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit<br /><br /></td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,972 crore<br /><br /></td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,997 crore<br /><br /></td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1%<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br /><em>Source: Company reports, $ in constant currency terms</em><br /><br />The Bengaluru-based IT company reported a 29.6% growth in its revenue, year-on-year, while IT services margin remained strong at 17.6%.<br /><br />    <div type="image" title="Wipro IT services revenue $ CC - Q3 FY22." msid="88856195" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s IT services revenue over the past eight quarters&amp;lt;/p&amp;gt;"></div><br /><cmsannotation type="cmsannotation" annotationid="New large deals in the quarter – from healthcare to waste management and more" comment="subhead" text="New large deals in the quarter – from healthcare to waste management and more"><span data-til="noop">New large deals in the quarter – from healthcare to waste management and more</span></cmsannotation><br /><br />Wipro stated that it has signed new deals across various industries, including healthcare, waste management, manufacturing and more.<br /><br />In its IT services segment, Wipro signed up clients across healthcare, manufacturing, retail brokerage, and hospitality sectors, all of which are US-based.<br /><br />In its Digital services segment, the company signed up a Brazilian water and waste management company, apart from three other US-based clients to enhance their cloud security and digitisation programs.<br /><br />The company’s board has also declared an interim dividend of ₹1 per share.<br /><br /><cmsannotation type="cmsannotation" annotationid="Omicron forces Wipro to close its offices globally for the next four weeks" comment="subhead" text="Omicron forces Wipro to close its offices globally for the next four weeks"><span data-til="noop">Omicron forces Wipro to close its offices globally for the next four weeks</span></cmsannotation><br /><br />The relentless surge of the Omicron variant of Covid-19 has forced Wipro to close its offices globally for the next four weeks.<br /><br />The company CEO Delaporte stated that the return to offices would be re-calibrated based on the evolving situation of the pandemic.<br /><br /><strong>SEE ALSO:<br /><br /><a href="https://www.businessinsider.in/careers/news/wipro-plans-to-hire-30000-freshers-in-2023-as-attrition-rate-increases-to-22/articleshow/88855676.cms">Wipro increases hiring plan to 30,000 as attrition hits a new high</a><br /><br /></strong><a href="https://www.businessinsider.in/tech/enterprise/news/infosys-saw-its-revenue-grow-by-7-in-q3-fy22/articleshow/88855661.cms"><strong>Infosys raises full year guidance after the best quarter in at least eight</strong></a><br />

Wipro CEO says dollar revenue will grow 2-4% in the next three months

<ul><li>The second quarter has always been a historically strong quarter, but Q2 FY24 is expected to be soft.</li><li>The demand picture is still weak and for most sectors, the slowdown has not bottomed out.</li><li>Vendor consolidation has led to a few large deal wins by the Big 3, but conversion to revenues will be slow.</li><li>Margin expansion will also be tough with a stable Rupee and cost levers yet to kick in. </li></ul>Little has changed for the Indian <keyword id="46964" type="General" weightage="20" keywordseo="it-sector" source="Orion">IT sector</keyword> in the last three months. The second quarter earnings are expected to be as muted as the quarter before. IT sector clients are continuing with their budget squeezes, cuts in discretionary spending that’s bringing in less into the companies’ revenue kitty. <br /><br />Top-tier IT companies are expected to see a 0.8% fall in constant currency revenues to a tad over 1% growth on a quarter-on-quarter basis. At the highest end of the most optimistic expectations is a 1.3% growth. On a year-on-year basis too, most see lower single digit growth or a fall – showing that the fear of recession has taken over the market. <br /><br />Most analysts expect <keyword id="6354512" type="General" weightage="20" keywordseo="infosys" source="Orion" topicspecial.url="https://economictimes.indiatimes.com/infosys-ltd/stocks/companyid-10960.cms">Infosys</keyword> to retain its FY24 revenue growth, guidance of 1-3.5%. <keyword id="141968" type="General" weightage="20" keywordseo="hcl-tech" source="Orion" topicspecial.url="https://economictimes.indiatimes.com/hcl-technologies-ltd/stocks/companyid-4291.cms">HCL Tech</keyword> is widely expected to cut its 6-8% growth projections. Most others are expected to veer towards the lower end of the guidance as the first half remains muted. <br /><br /><strong>Where is the budget flush?<br /></strong><br />The much awaited budget flush that could have changed the fortunes of the sector is still evasive. “The second quarter of FY24 is likely to be incrementally better than the first quarter. But nowhere close to what most players envisaged at year-beginning. Hopes of finding a bottom in the first half has not materialised, we believe, as project ramp downs/cancellations continue,” says a report by J M Financial. <br /><br />The second quarter has always been a historically strong quarter. And, this theory is all set to change. “Most of the demand indicators are trailing 10-15% below levels at the beginning of the year and only slightly better than the July lows,” said HDFC Securities. <br /><br />Across sectors, budget cuts have played out differently. For the key BFSI sector, spend cuts have bottomed out. The recovery however is gradual and may not be visible before FY25, says HSBC. Telecom sector which was one of the worst affected, along with high-tech and retail, could also bottom out in the second quarter. <br /><br />“We think the spending cuts have been unsustainably aggressive. Hi-tech demand has already started to improve from 2Q. Further, verticals like O&amp;G and manufacturing continue to do well,” says HSBC, which believes that Q2 will see a slight positive growth. It however does not see any major budget flush or V-shaped recovery.<br /><br /><strong>Expected change in Constant Currency Revenues (QoQ)<br /></strong><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><strong>Company<br /><br /></strong></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><strong>Kotak<br /><br /></strong></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><strong>J M Financial<br /><br /></strong></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><strong>IIFL Securities</strong><br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.5%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.2%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.6%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.3%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.6%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.8%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.8%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.8%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.1%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TechM<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1% <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.5%<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody></table><em>Source: Research reports </em><br /><br /><strong>Big deals, slow conversion <br /></strong><br />Budget squeezes led to consolidation, with IT clients going in for mega deals. All the big three made top deal announcements in Q2. Infosys bagged a EUR1.5 billion deal from Liberty Global, in addition to a $454 million deal from Danske Bank. <br /><br /><keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion" topicspecial.url="https://economictimes.indiatimes.com/tata-consultancy-services-ltd/stocks/companyid-8345.cms">TCS</keyword> bagged a £800 million deal from Jaguar Land Rover. It also won a NEST € 810 million deal from NEST. HCL Tech also won a $2.1 billion deal from Verizon. “We believe deal flow has steadied after the transition from discretionary spending-powered short-tenured programs to larger programs fueled by cost take-outs, which have longer sales cycles,” said Kotak Institutional Equities. <br /><br />These kinds of deal wins are expected to continue and grow through the financial year, as discretionary spending. “While most IT services firms saw a further moderation in year-on-year revenue growth in the June quarter, deal wins accelerated. Since then, the large and mega deal win momentum has quickened, giving us confidence in strong growth for FY25,” said BNP Paribas. <br /><br />Large deals, however, are spread across five years, and tend to convert slowly into revenues. “Barring re-badging deals, ramp-up and hence revenue conversion of mega deals tend to be long drawn,” says J M Financial. <br /><br />The most watched metric for the IT sector this season would be Total Contract Value-to-revenue conversion pace. The others would be the extent of compression in the existing book of business, and greater-than-normal furloughs, says a report by Nirmal Bang. <br /><br /><strong>Rupee, salaries &amp; margins <br /></strong><br />One advantage of a soft macroeconomic environment is Rupee depreciation that adds to the margins of IT companies. Rupee depreciated only by 1% on a quarter-on-quarter basis, adding little to the sectoral margins. <br /><br />“This slowdown is different. Indian Rupee is relatively stable and Covid-19-led cost rationalisation is still unwinding like travel costs and onshore mix,” says HSBC Global Research.<br /><br />Margin management is also expected to be tough going forward as the operating environment has turned hard. Unplanned benching due to sudden ramp-downs, shift in revenue mix towards cost-takeout deals and lower growth will add to the pain on the profitability end. <br /><br />Kotak also expects a marginal decline in the EBIT margin on year-on-year comparison, except TechM where the decline will be sharp. Increase in costs such as travel and back-to-office expenses will hurt. “Cost levers are yet to fully kick in,” the research firm adds. <br /><br />On the other hand, net hiring has been all but flat for most IT sector companies. Moreso, Infosys, HCL Tech and <keyword id="10862" type="General" weightage="20" keywordseo="wipro" source="Orion" topicspecial.url="https://economictimes.indiatimes.com/wipro-ltd/stocks/companyid-12799.cms">Wipro</keyword> have all delayed wage hikes which can help, along with other cost rationalization programmes.<br /><br />  <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[]]></cdata></div><br />

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