India’s IT sector may see a growth in the range of 4-5 per cent in the long run, above the trendline of the past three years, according to a report of HSBC Global Investment Research.

Analysts assumed less macro volatility in the coming quarters and expected some recovery in growth in FY27, the report from HSBC Global Investment Research said.

The IT services sector is expected to remain sluggish in Q2 FY26, as demand continues to be muted amid macroeconomic uncertainties and the deflationary effects of artificial intelligence. According to HSBC, these conditions are unlikely to improve until FY27, with global headwinds continuing to exert pressure on pricing. Despite this, the firm maintained a ‘buy’ rating on several IT stocks.

Vendor consolidation and cost-rationalization deals will

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