Global tech growth outpaces India in Q4 2025: Nasscom report
NEW DELHI, INDIA — Global technology firms outperformed their Indian counterparts in the fourth quarter of 2025, according to a recent report by Nasscom, highlighting a widening gap in revenue growth and margin performance.
While India’s technology sector posted steady gains, global players saw stronger demand and higher profit growth, reflecting shifting market dynamics in the industry.
Steady Indian IT growth faces regional challenges
India’s technology industry reported 1.2% growth quarter-on-quarter and 3.7% year-on-year in reported currency terms, with notable performance in sectors like healthcare, retail, transportation, travel and hospitality, manufacturing, telecom, banking, financial services, and insurance (BFSI), and energy & utilities.
However, geographic trends revealed uneven growth: “North America and EMEA grew sequentially, while India declined,” the Nasscom report noted.
The workforce landscape also showed subtle improvements. The employee base increased by 40 basis points, while attrition dropped 60 basis points to 14.6%, signaling efforts to retain talent amidst ongoing competitive pressures.
Pure-play business process management (BPM) companies grew 3.3% q-o-q, though with a contraction in net margins, and engineering research and development (ER&D) firms grew 1.3% while also facing margin pressure.
Global tech leaders pull ahead
In contrast, select global technology companies saw revenues climb 9.5%, accompanied by a slight uptick in net margins and an increase in overall headcount.
These figures suggest that global tech demand is outpacing domestic growth, providing stronger operational leverage for international firms.
The report emphasizes that while India continues to be a critical technology hub, it is facing rising competition from global markets.
“Revenues for the select set of global tech companies increased by 9.5% with slight increase in net margins sequentially,” Nasscom stated, underscoring the relative advantage of multinational players.
Outlook for India’s outsourcing sector
For the outsourcing sector, these trends signal both challenges and opportunities. Indian firms remain integral to global supply chains, particularly in BPM and ER&D services, but must navigate margin pressures and regional revenue imbalances to stay competitive. Leveraging sector-specific growth in healthcare, BFSI, and manufacturing could offset slower domestic demand.
As global tech firms accelerate, Indian outsourcing companies may increasingly need to combine digital transformation with targeted market expansion to maintain their relevance and growth trajectory.
