Oct 6: IT Jobs In Flux, D2C Profits Elude

An old adage says “cricket is a game of glorious uncertainties” and the officials in India W vs. Pakistan W World Cup clash were determined to prove this right starting at Step 1 - the literal toss. In an epic and confusing blunder, the presenter misheard Pak skipper Fatima Sana’s call of “Tails” as “Heads”, and the ICC match referee, apparently too bored to notice, declared Pak the winner when the coin landed on Heads. You guys had one job. Anyway, didn’t stop India from winning though. That’s 12-0 and counting.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

Subdued Growth Clouds FY26: India’s IT sector is facing muted growth in FY26, with major firms like TCS, Infosys, and HCLTech reporting healthy deal pipelines but revenue growth guidance restrained at 1–5%. HSBC Global Research highlights that near-term discretionary spending by clients remains soft. However, momentum could return in FY27, driven by recovery in key export markets, particularly the US, and increased enterprise adoption of AI.

AI And Digital Transformation: Enterprise-scale AI adoption is seen as the next major growth driver. AI projects are shifting from productivity improvements to business growth initiatives. Accenture, with a large workforce in India, nearly doubled its Gen AI bookings to USD 5.9 billion in FY25. Analysts estimate that AI-led digital transformation could boost revenue growth for Indian IT services companies by 200–300 basis points in FY27.

The Latest Hit - Accenture And Global Layoffs: The sector is also dealing with significant workforce reductions. In the latest hit, Accenture has reportedly cut around 11,000 roles globally, despite posting strong revenue numbers. CEO Julie Sweet noted that hiring would continue in FY26 for specialized roles, but employees whose skills could not be redeployed were let go. Globally, other IT majors have also reduced staff: Intel plans to cut 25,000 jobs in 2025, Microsoft 9,000, while Amazon, Google, and Meta have all undertaken large-scale layoffs in the past year. In India, TCS announced 12,000 cuts, mainly among middle- and senior-grade employees, while Infosys and HCL Technologies reported limited redeployments and slower hiring.

Hiring Focus Shifts To Specialized Skills: Hiring in India is now concentrated on AI, cloud, analytics, and other emerging technologies. Fresher recruitment has dropped sharply, and large firms have reported delays in onboarding. Strategic acquisitions by Indian IT companies remain measured (between USD 1.8–2.2 billion from FY22–FY25) compared to global peers’ far larger M&A activity, signaling a cautious growth approach.

What It Means for Indian IT Professionals: For IT professionals in India, the message is clear: job security is no longer guaranteed, and traditional career paths are shifting fast. Employees must focus on specialized skills in AI, cloud, analytics, and digital transformation to stay relevant.

Scaling Up With FMCG Backing: In the past five years, India’s leading FMCG firms - HUL, ITC, Marico, and Emami - have acquired or taken controlling stakes in over a dozen digital-first brands. Analysts note that these partnerships have enabled startups to scale faster by leveraging nationwide distribution networks, marketing resources, and retail touchpoints that would have been difficult to build independently. Using parent company infrastructure, many brands gained access to hundreds of warehouses and expanded retail reach, accelerating pan-India operations.

Profitability Remains A Challenge: Revenue gains have not always translated to profits. High customer acquisition costs and integration challenges continue to weigh on margins. Crisil Ratings reports that while D2C brands grew at 40% CAGR between FY21–24, fewer than 15% crossed ₹250 crore revenue pre-acquisition, and only a third were profitable.

FMCG Perspective: For FMCG majors, acquiring D2C startups is less about immediate profits and more about long-term strategic gains. Startups provide innovation and direct-to-consumer channels, allowing FMCG firms to access new markets faster and test categories with lower risk.

Top Indian Consulting Firms Hit $1B Revenue: India’s leading strategy consultancies - McKinsey, BCG, Bain, and AT Kearney - have collectively surpassed $1 billion in revenues in FY24, marking a new milestone for the sector. The quartet grew at an average of 15-16%, outperforming global peers, driven by rising demand for digital transformation, business strategy, and advisory services. With this growth trajectory, combined revenues are expected to exceed $3 billion within the next decade.

New Company Registrations Surge: India saw a surge in new company registrations, with over 21,600 entities registered in September, marking the highest monthly figure in five months. The growth reflects increased investor confidence and a favorable business environment, suggesting a positive outlook for the country's economic expansion.

BSNL To Upgrade 4G Towers To 5G: BSNL plans to upgrade all 92,500 of its 4G towers to 5G within the next six to eight months. The move aligns with BSNL's broader strategy to enhance its network capabilities and compete effectively in the evolving telecom sector.

US Farmers Reeling Amid Trade Wars: American farmers are facing one of their toughest years - rising production costs, labor shortages due to deportations, and retaliatory tariffs from countries like China have severely hit the agriculture sector. Farm production expenses are projected to reach $467.4 billion in 2025, up $12 billion from last year. Bankruptcies have surged to their highest level since 2021, demonstrating the financial stress on rural communities.

White House Plans Multi-Billion Bailout: To address the crisis, the Trump administration is preparing a $10–$14 billion relief package for farmers. Options include direct payments through the Emergency Commodity Assistance Program (ECAP) or a combination of tariff revenues and other funds. Officials say the final amount will depend on farmers’ needs and the revenue generated from tariffs. The administration frames protecting farmers as both an economic and national security priority.

Soybean Industry In Crisis: The US soybean industry, America’s largest agricultural export valued at $24 billion in 2024, has been particularly affected. Exports to China, previously about half of the total, have dropped to zero. With the harvest underway, farmers are facing storage and sales challenges.

Reasons Behind China’s Refusal: China’s move is largely a response to tariffs imposed by the U.S. on Chinese goods. Beijing is using soybean purchases as leverage in broader trade discussions, while simultaneously diversifying its suppliers to reduce dependency on U.S. exports. The Chinese market, which accounted for about half of U.S. soybean exports in previous years, is now sourcing heavily from Brazil and Argentina.

Growing Corporate Exodus: A growing number of multinational corporations are exiting Pakistan, citing economic instability, currency devaluation, and complex regulatory hurdles. Major companies including Procter & Gamble, Gillette, Eli Lilly, Shell, Microsoft, Uber, and Yamaha have either scaled down operations or ceased business in the country. Procter & Gamble, for instance, has decided to wind down its manufacturing and commercial activities, transitioning to third-party distributors. Analysts point to the broader challenges that make Pakistan’s business environment increasingly difficult for foreign investors - bureaucratic hurdles, unpredictable regulations, and a depreciating currency eroding profitability. This trend not only impacts large corporations but also local supply chains and employment, as operations are downsized or outsourced.

Broader Implications: The departure of MNCs could affect the availability of goods and services in key sectors, particularly consumer goods and pharmaceuticals, and may signal caution for companies considering entry into the market. Experts note that unless economic reforms are implemented and investor confidence restored, more foreign firms could follow suit. Policymakers face an urgent need to stabilize the economy and simplify the business environment to retain existing investors and attract new ones.

Trump’s $100K H-1B Visa Fee Faces Legal Challenge: A coalition of unions, educators, and nonprofit groups has filed a lawsuit against the Trump administration over its $100,000 one-time fee on new H-1B visas. The plaintiffs argue that the president lacks congressional authority to impose such a fee and bypassed regulatory processes.

Comet AI Browser Could Cut Workplace Costs: CEO Aravind Srinivas suggests that companies could reduce hiring by leveraging Comet to handle tasks such as email drafting, meeting scheduling, and information retrieval. Perplexity AI's Comet browser, now free for all users, is designed to function as an autonomous personal assistant, aiming to enhance workplace productivity.

OpenAI Seeks Global Funding For Expansion: OpenAI CEO Sam Altman is touring Asia and the Middle East to secure funding and manufacturing partnerships for the company’s growing computing infrastructure. He has engaged with major suppliers like TSMC, Foxconn, Samsung, and SK Hynix to boost AI chip production and secure priority orders. Altman is also meeting investors in the UAE to raise capital for research and infrastructure.

Japan’s First Female PM: Sanae Takaichi has been elected leader of Japan’s ruling Liberal Democratic Party (LDP), positioning her to become the country’s first female prime minister. A staunch conservative and former economic security minister, she is known for her hawkish defense stance and alignment with Shinzo Abe’s policies.

Israel-Hamas Egypt Talks: Israel and Hamas are scheduled to begin mediated negotiations in Egypt on Monday, aiming to end a two-year conflict that has devastated Gaza and destabilized the Middle East. The talks, facilitated by Egypt, will focus on the proposed exchange of Israeli hostages for Palestinian prisoners as part of Trump’s Gaza Peace Plan.

China Deploys Underwater Data Center: China has inaugurated its first commercial underwater data center off the coast of Hainan. This facility is designed to enhance the country's AI capabilities by processing data more efficiently and sustainably.

Greenland Rare-Earth Mine, US Considers Stake: The Trump administration is considering acquiring an equity stake in Critical Metals Corp, the company developing Greenland’s Tanbreez rare earths mine. This move aims to reduce U.S. dependence on China for critical minerals.

Arunachal Pradesh Launches Commercial Coal Mine: Arunachal Pradesh is set to inaugurate its first commercial coal mine at the Namchik-Namphuk coal block in Changlang district on October 6, 2025. The site holds 1.5 crore tonnes of coal reserves and will be operated by Coal Projects Private Limited (CPPL).

Himalayan Rains, Landslides Kill Dozens: Heavy rains and landslides have hit the eastern Himalayas, causing dozens of deaths and leaving hundreds stranded. In Darjeeling, at least 17 people have died and key roads, including the Dudhia iron bridge, are damaged. Over 40 fatalities are reported in Nepal due to floods and landslides. Around 1,000 people are stranded near Mount Everest amid a blizzard, with rescue operations underway.

India-China Direct Flights Resume: India and China are set to begin direct flights later this month after a five-year suspension, signaling a thaw in bilateral relations. The suspension, which began in 2020 due to the COVID-19 pandemic and border tensions, is ending with scheduled services between designated cities.

Aldeguer Wins Indonesia GP; Marquez Injured: In a dramatic Indonesian Grand Prix, rookie Fermin Aldeguer secured his first MotoGP victory after a crash involving world champion Marc Marquez and Marco Bezzecchi on the opening lap.

THAT’S ALL FOR TODAY!

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