Microsoft resale business dip drags Sonata down two spots

Sonata Software is now India’s 13th-largest IT company following a Q2 revenue drop caused by Microsoft's direct licence sales.

- Jas Bardia

(AP)

Sonata Software slipped two places in Indian IT’s pecking order because of a steep decline in second quarter revenue, primarily caused by Microsoft Corp. selling its software licences directly to large clients.

Such software reseller business used to make up for more than 60% of Sonata's revenues. Microsoft, like other large software companies, earlier sold much of its licences through third parties like Sonata. Now, it is selling directly to large clients. While it has happened in the past, Sonata’s management said it’s a first in Asia.

Bengaluru-based Sonata, as a result of topline contraction, is now India’s 13th-largest IT outsourcer after losing ground to L&T Technology Services and Firstsource Solutions after a lacklustre July-September.