India's IT Demand Outlook Remains Uncertain Amid US Tariff Risks: Wipro Chair

India's IT demand outlook remains uncertain due to US tariff risks, according to Wipro Limited Chair. The company, one of the world's largest IT services companies, has seen net sales break down by activity as follows: IT services (98.8%) and sale of hardware (1.2%). Geographically, net sales are distributed as Asia/Pacific/Middle East/Africa (13.2%), Americas (57.5%), Europe (26.6%), and other (2.7%).

India's IT demand outlook remains uncertain due to US tariff risks, according to Wipro Limited Chair. The company, one of the world's largest IT services providers, has seen its net sales break down by activity as follows: IT services (98.8%) and the sale of hardware (1.2%). Geographically, net sales are distributed as Asia/Pacific/Middle East/Africa (13.2%), Americas (57.5%), Europe (26.6%), and other (2.7%) [3].

The demand outlook for India's $283-billion IT sector is clouded by the uncertainty surrounding US tariffs and global geopolitical factors. A senior executive at Wipro noted that these risks are significantly impacting the sector [2]. The company's financial results for the first quarter of the financial year ending March 2026 are expected to reflect this uncertainty, with analysts anticipating a sequential decline in revenue and operating performance [3].

Brokerages expect Wipro's revenue to fall within its guided range of -3.5% to -1.5% in Q1, with margin impacted by weak utilization and muted client budgets. The company's Q2 guidance will be closely watched, with most firms expecting a narrow range of -1.5% to +0.5% sequential revenue growth [3].

The Federal Open Market Committee (FOMC) has suggested a soft landing for the US economy with slowing GDP growth but has not raised alarms of recession. However, Trump's bold policy measures have made the next several months a critical period for the US economy. In May 2025, J.P. Morgan Research had reduced the probability of a U.S. and global recession occurring from 60% to 40% [1].

The uncertainty around taxes, tariffs, and geopolitical issues has left businesses and consumers unsure about their spending and investment decisions. As of now, inflation and tariffs have not yet pulled down the U.S. economy. The investors, however, should continue to monitor the labor market and other economic data.

References:
[1] https://m.economictimes.com/news/international/us/us-facing-recession-due-to-trumps-aggressive-trade-policies-heres-a-reality-check/articleshow/122513510.cms
[2] https://www.marketscreener.com/quote/stock/WIPRO-LIMITED-6494362/news/India-IT-demand-outlook-remains-uncertain-amid-US-tariff-risks-says-Wipro-chair-50521289/
[3] https://www.ndtvprofit.com/quarterly-earnings/wipro-q1-results-preview-revenue-guidance-margin-outlook-analysts-estimates