Sonata in for revenue dent as Microsoft eyes direct licensing

The move by Microsoft comes on the back of the tech company giving fewer tech work to Indian outsourcers

- Jas Bardia

A global technology giant's attempts to sell its software licenses directly to clients might lead to an unexpected casualty in Sonata Software Ltd, which counts that tech company as one of its five largest customers.

Sonata Software, which entered Indian IT's $1-billion annual revenue club last year, is expected to get less business selling Microsoft licenses, according to at least three people with knowledge of the matter.

According to experts, the IT services company gets more than $500 million from selling Microsoft product licenses, making it one of the only large IT outsourcers to sell such licenses. This translates to almost half of its $1.2 billion revenue in FY25.