Tech's middle order promises to give tough chase to mkt leaders

Smaller information technology (IT) services companies earning $1-5 billion in revenue outgrew the Big Four by more than three times in FY25, a performance they may repeat in the year ahead, multiple analysts tracking the sector said.

- Jas Bardia

Better execution skills and skillful navigation of the GenAI disruption have helped the mid-cap IT companies eat into the business of their larger rivals.

Coforge, Persistent Systems and Hexaware Technologies Ltd reported revenue growth of 31.1%, 18.8%, and 13.7%, respectively, in the last fiscal year. To be sure, Hexaware follows a January-December financial year while other homegrown IT services companies follow an April-March financial calendar. Meanwhile, Tata Consultancy Services Ltd, Infosys Ltd and HCL Technologies grew 3.78%, 3.85% and 4.3% respectively, and Wipro Ltd's revenue fell 2.72%.

Historically, all these companies would bid for different projects, but over the last 12 months, the rise of GenAI has enabled smaller companies to compete with their larger peers.