Memory and chip prices rise 20% squeezing Indian IT firms
Business
Indian IT companies are feeling the pinch as memory and chip prices have jumped 20% in the past year, making it tough to stay profitable on big projects.
Tech Mahindra's CEO Mohit Joshi says he can't promise fixed prices for long-term deals anymore because of these cost spikes.
LTM says shortages slow $330 million project
Hardware shortages and supply chain issues, made worse by geopolitical tensions in West Asia, have even slowed down a $330 million government project, according to LTM Ltd's Venu Lambu.
To fight back, companies like HCL are investing in new data centers and relying on the lucrative GPU rental market.
Despite all this, major players still pulled in billions last quarter, showing just how resilient the industry is trying to be.