Losing FedEx business may trim 8% of Mphasis revenue

FedEx will end its business arrangement with the Bengaluru-based IT firm by the year-end

- Jas Bardia & Varun Sood

Mphasis Ltd has lost one of its oldest clients, which accounted for 8% of the revenue of India's seventh-largest information technology services firm, after FedEx Corp. selected Accenture Plc to do much of its IT work. This loss presents a fresh challenge for CEO Nitin Rakesh to replace the loss in business in a challenging economic environment.

Three people familiar with the development said FedEx, which accounted for $130 million of Mphasis's $1.61 billion in revenue for the year ended March 2024, will end its business arrangement with the Bengaluru-based IT firm by the end of the year after a ten-month transition period.

At its peak in FY2024, FedEx accounted for $35 million of Mphasis's revenue in a quarter; business from the logistics giant is expected to be naught by the end of 2025.