IT companies tighten belt as AI, macro headwinds squeeze biz margins

The fiscal first quarter showed companies are stretching all internal levers aggressively to protect profits amid slowing large-deal momentum. This includes lowering selling, general and administrative expenses (SG&A) costs, delaying pay hikes, and rejigging bench policies. Analysts expect the trend to continue through the fiscal second half as the IT sector is turning into a "negotiator's market".