New Delhi, July 4 -- India's Information Technology (IT) companies are expected to report another quarter of subdued earnings growth despite seasonal strength, due to client-specific issues, weakness in select verticals and geopolitical uncertainty. Addressable tech spending in Indian IT companies is expected to remain softer year-on-year as enterprises redirect technology budgets towards artificial intelligence (AI) initiatives and Global Capability Centres (GCCs), according to a report by Systematix Research.

The report indicates that the outlook for the sector would remain challenging over the next few years, with tier-one IT companies expected to deliver annual revenue growth in the range of -1 per cent to 5 per cent, constrained by ...