Large clients keep Indian IT afloat amid Al uncertainties

Large clients helped soften the blow from an artificial intelligence (AI)-powered upheaval for at least three of India's top five software services providers this year so far.

- Jas Bardia [e-mail]

Yet, analysts say, even that may have come at the cost of smaller peers.

Revenue from the top 10 accounts grew 6.92% for Infosys Ltd, 0.32% for Wipro Ltd, and 1.58% over the previous year for Tech Mahindra Ltd in the nine months ended September, outpacing their overall growth, according to Mint's analysis of their financials. The overall revenue of Infosys and Tech Mahindra grew 2.77% and 1.21%, while it declined 0.94% for Wipro during the period.

The top five information technology (IT) services companies get at least a fifth of their revenue from their 10 largest accounts, according to the companies' disclosures. Faster growth from such clients helped these companies when the generative AI-driven transition is cutting into the revenue of India's $283-billion IT sector.

"Infosys, Wipro and Tech M have all prioritized these accounts, invested more in sales and account management and are reaping the benefits from this prioritization and investments," said Peter Bendor-Samuel, founder of Dallas-based tech research firm, Everest Group.