Global IT services companies are experiencing delays and a slowdown in technological advancements due to the uncertainty around US tariffs.

The Indian IT sector is starting to feel the effects of the US reciprocal tariff war, as contracts are being postponed as clients take a wait-and-watch stance. According to their most recent quarterly results calls, some of the nation's leading exporters of IT services, such as Wipro, Infosys, and Tata Consultancy Services, have started to exhibit symptoms of stress.

The biggest supplier of IT services in Asia, Tata Consultancy Services (TCS), has noted an increase in uncertainty that began in February but is now having an effect on customer decision-making and project schedules.

In releasing the quarterly results, TCS CEO and MD K. Krithivasan said that although the economic climate was generally favorable till February, the company has began to experience some degree of uncertainty in March. This led to certain task delays and several ramp-downs.

The US tariff declaration has put Wipro under a comparable kind of pressure. While the firm started the January 2025 quarter on a strong one, gradually over the quarter, the attitudes became unfavorable, and the company started seeing the effect in the US as well as the European market.

Srinivas Pallia, CEO and MD of Wipro stated on the company's latest analyst call that this is due to the rate rise and the anticipation around it, which has a cascade effect. Additionally, he admitted that certain European companies have also slowed down their transformation initiatives and are now looking at the deadlines again.