The Indian IT industry is likely to experience mid-single digit revenue growth in the current fiscal year, similar to pre-pandemic levels. Global IT firms, including Accenture, Cognizant, and Capgemini, have issued lower revenue growth guidance for 2024, suggesting a continued subdued demand environment. Accenture's reduced guidance from 2-5% to 1-3% for the fiscal year 2024 reflects constraints in client IT spending due to uncertain macroeconomic factors. This trend is expected to affect Indian IT firms' growth prospects in the upcoming quarters.

Bengaluru's status as India's IT hub is threatened by infrastructure issues and a severe water crisis. Industry officials warn that without urgent action, cities like Hyderabad and Pune may overtake Bengaluru due to their better infrastructure and civic facilities. The water shortage, exacerbated by insufficient rainfall, has forced IT companies to rely on water tankers and implement work-from-home arrangements. Experts blame rapid urbanization, poor planning, and local government apathy for the crisis. Solutions like atmospheric water generation technology are being explored to mitigate the situation.

Incruiter, a company offering technology-powered interview solutions, helps companies save time and money during remote recruitment. CEO Anil Agarwal explains that Incruiter's services streamline the screening process, making it faster and more cost-effective. The company's AI Interview Software detects anomalies during interviews to prevent cheating. Incruiter, which began in 2018, has released six products, with 'Interview as a Service' being the standout. They charge clients per interview and user, operating in the Middle East, South East Asia, the US, and India, with plans to expand. The company is profitable, has grown its team, and is looking to raise $2-3 million in capital to grow globally.

JP Morgan anticipates a demand recovery for the Indian IT services industry in 2024, driven by expected interest rate cuts from the US Federal Reserve. The brokerage has upgraded its outlook for major Indian IT firms, including Infosys and L&T Technology Services, to 'overweight' and others like TCS, HCLTech, Mphasis, and Persistent Systems to 'neutral'. The Indian IT sector faced a significant slowdown in 2023, but potential rate cuts and cost-saving measures by enterprises are expected to create a better demand environment. The US Federal Reserve's planned rate reductions could lower the cost of capital, enabling more investment in technology advancements. Currently, discretionary spending by clients is on hold, impacting digital deals and overall growth.

The Indian IT industry experienced a slowdown in 2023 due to deferred technology spending by global enterprises amid economic uncertainty. Key highlights include the high growth in the engineering services segment, significant leadership changes, and the emergence of generative AI as a crucial technology area. Major IT firms like Infosys, Tech Mahindra, Cognizant, Wipro, and TCS saw numerous top-level exits. Hiring slowed down significantly, with a notable reduction in workforce and a halt in fresher recruitment. Operating margins were pressured by high wage costs and reduced revenue growth. Experts suggest that any recovery in 2024 will depend on sentiment changes in the US and European economies, potentially influenced by US Federal Reserve rate adjustments.

Global enterprises are increasingly establishing their own technology centers in India, particularly in the manufacturing and BFSI sectors, to manage technology development internally rather than outsourcing to IT services companies. This trend has accelerated in 2023, with many financial services clients performing a significant portion of their technology work in-house. The number of Global Capability Centres (GCCs) in India has grown, with new centers emerging in both tier-I and tier-II cities. Despite the insourcing trend, global firms are expected to continue outsourcing projects in emerging technology areas. The GCC sector has seen an increase in hiring and salary hikes, although this growth may stabilize in 2024.

The Indian residential real estate market experienced a significant 31% growth in home sales in 2023, with top cities like Mumbai and Pune leading the surge. Despite rising property prices and high home loan rates, the market saw record-breaking sales, with Mumbai Metropolitan Region registering the highest sales. Southern cities like Hyderabad and Bengaluru also showed substantial growth. ANAROCK Group's Chairman, Anuj Puri, noted that the market defied expectations of a slowdown due to global and domestic economic challenges. The demand is expected to remain strong in 2024, even with anticipated price hikes.

India's domestic consumption is a strong investment theme, with a significant rise in per capita income and the country poised to become the third largest economy. Venture capital funds like Fireside Ventures, with a Rs 3,000 crore fund, are investing in home-grown brands such as boAt and MamaEarth. Dipanjan Basu, Cofounder & Partner at Fireside Ventures, anticipates the emergence of large consumer brands in India. The fund focuses on pre-series A investments, typically investing Rs 10-Rs 15 crore initially and scaling up in future rounds. Fireside Ventures has a notable exit track record and is currently deploying capital from its third fund, planning to make around 25 investments. The fund has partially exited MamaEarth during its public listing and continues to hold a stake.

Indian IT firms are experiencing shorter contract renewals with lower volumes of work committed by clients, leading to concerns about revenue growth in 2024. The trend, observed during contract renewals in December-January, includes one-year extensions and deals with lower annual contract value but higher total contract value. Tata Consultancy Services, Infosys, and Wipro have secured large deals but expect low single-digit revenue growth this year. Brokerage firms anticipate growth challenges for the first half of 2024, with a potential recovery depending on large deal momentum and discretionary spending in sectors like financial services and hi-tech.

PhonePe has introduced a new credit section on its platform, allowing users to check their credit bureau scores for free and manage their credit or Rupay cards. The company aims to empower users with tools to understand and manage their credit health. PhonePe plans to launch consumer loans within its app soon, working as a distributor for personal loans and developing underwriting tools. The initiative is part of a broader trend among payment platforms to offer loan services in collaboration with banking partners.