The big four IT firms — Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro — added 80 large clients, who are classified as clients who provide deals in the $10 million and $100 million range, in FY23 versus 132 clients in FY22, according to ET’s analysis.
“Transformational spending will continue now that technology is central to every company’s strategy. But given the macro environment, companies are slowing discretionary spending. This is why we continue to see strong demand for outsourcing, mixed with softened demand for consulting and project-based work,” Namratha Dharshan, chief business leader of India Research at global tech research firm ISG, told The Economic Times.
Industry experts said that the major causes behind the decline in client additions are a slowdown in discretionary spending and weak macros, when compared to the demand upcycle last year. Firms like HCLTech and LTIMindtree noted that clients are giving importance to projects that give them quicker returns and preferring cost-saving deals to reinvest capital into transformation projects.
First Published: May 30 2023 | 1:07 PM IST