Zoho CEO Sridhar Weambu said that it is not a sudden optic in US President Donald Trump-Laga Tariff or Artificial Intelligence (AI), which is responsible for the “cyclical recession” of Indian IT service companies, but they have their own disabilities.
It comes after Indian IT giants – InfosysThe Tata Consultancy Services and Wipro- reported disappointing earnings in their major markets this quarter this quarter, indicated a recession of hiring possible work in the entire region this year.
Reacting to the news of the disappointing earnings of the companies, Wambu said that his “operating thesis” says, “What we are seeing is not just a cyclical recession, and it is not just AI-related. Even without tariff inspired uncertainty, there was further trouble.”
CEO of Zoho The software industry is “quite disabled, in both products and services”. “These disabilities have accumulated in the decades of the asset bubbles for a long time.”
It is a matter of regret that Vambu said, many of those disabilities have been adopted in India.
“Our jobs depended on them. IT industry Sucked in talent that has gone into manufacturing or infrastructure (for example). ,
He highlighted that India is “in the early stages for a long time”. “My thesis is that the last 30 years are not a good guide post for the next 30 years. We are actually at a divisive point.”
He said, “We have to challenge our perceptions and think fresh.”
In March this year, Wambu said that the IT industry left “all oxygen sucked”, ‘financial bubbles’, which could suck resources and leave us with low capabilities.
What is IT Sector Q4 Income Sign?
The biggest IT players’ Q4 number and development perspective indicate that the worst may not be behind. While the demand for the previous several quarters between rising interest rates and sticky inflation has been weak, Trump’s tariff policies have increased concerns over economic growth.
Most experts feel that America can see a slowdown, and a business war will make a large extent in global economic growth.
The region appears at a divine point as the industry stems uncertainty Trump’s tariffEconomic recession, and the rise of Artificial Intelligence (AI).
Experts say that the financial year 2025-2026 will be challenging, even if it may be slightly better than the previous financial year.
TCS vs Infosys vs. Vipro Q4 Results
TCS reported the fastest revenue growth in four years 64,479 crore compared to 61,237 crore was posted in the same period in the same period. After tax (PAT) for Q4Fy25, its consolidated profit fell to 1.7 percent 12,224 crore against the benefit of 12,434 crore reported for the respective quarter of the last financial year.
Infosys recorded a decline of 11.75 percent year-on-year (YOY) in consolidated net profit for Q4Fy25. 7,033 crore. The company’s revenue increased by 8 percent yoy due to operation for the quarter under review 40,925 crores 37,923 crore in the respective quarter of the last financial year.
Infosys estimated the flat for 3 percent revenue increase for FY26 in continuous currency terms since April 2009.
Wipro reported 26 percent year-on-time jump in consolidated net profit 3,569.6 crores. Consolidated revenue from operation for the quarter was almost flat 22,504.20 crores.
