India’s IT powerhouses, TCS and Infosys, have made significant strides in securing high-value clients post-pandemic. Over the past fiscal year, both companies added 12 new clients each, contributing over $100 million in revenue annually. In contrast, Wipro and HCLTech have faced slower growth, securing only seven new clients in the same revenue bracket.
By the close of the 2023-24 fiscal year, TCS led the race with 62 clients in this category, followed by Infosys with 40. Wipro and HCLTech trailed with 22 clients each. Comparing this to the pre-pandemic year, TCS had 49, Infosys 28, and both Wipro and HCLTech managed 15 clients in this high-revenue segment.
Ray Wang, principal analyst at Constellation Research, attributed the $100 million deals to consolidation strategies, where competitors’ projects are taken over. These deals typically span multiple service lines over several years. Despite expertise in handling such projects, firms like Wipro have struggled, particularly under previous leadership. Similarly, HCLTech secured substantial deals, such as with Verizon, but also faced losses due to insourcing initiatives like Allstate.
IT firms have observed a decline in large-scale deals, citing reduced discretionary spending stemming from geopolitical tensions, such as the Russia-Ukraine conflict, and recessionary fears. Although TCS, Infosys, and Wipro added significant clients during the pandemic through 2021-22, the momentum slowed, impacting growth. A recovery, however, began towards the latter part of the 2023-24 fiscal year, signaling a potential rebound in high-value deal acquisitions.
