Infosys, the major IT company, has postponed its annual salary hike for the fourth quarter of FY 2024-25, following the last increase in November 2023. This delay highlights the ongoing uncertainties within the domestic IT sector. One of the key reasons cited for the slowdown is the lack of increased IT spending from clients, influenced by macroeconomic factors, including potential tariffs under the upcoming Donald Trump administration. Infosys is not alone in this move, as other large IT companies like HCL Tech, LTI Mindtree, and L&T Tech Services have also refrained from implementing salary hikes to manage costs and maintain profits.

Financial analysts, including Motilal Oswal, anticipate a decline in Infosys’ margins for the December quarter, although this may be offset by strategies such as price increases, subcontractor cost optimization, and the company’s "Project Maximus" plan, which aims to reduce operational costs. For the second quarter of the current financial year, Infosys reported a 4.7% year-on-year profit growth and increased its income guidance for the full year from 3.75% to 4.5%. Despite these challenges, the company declared a dividend of Rs 21 per share during the same period.