Mid-size IT firms rethinking growth in generative AI era

Firms adopting new metrics to assess short-term growth amid macroeconomic, GenAI risks

- Jas Bardia

India's mid-size information technology outsourcers are quantifying new metrics to evaluate short-term growth in a bid to counter macroeconomic and generative AI threats.

While firms focus on better project execution when uncertain macroeconomic conditions force clients to cut tech spending, companies like Coforge Ltd and Persistent Systems Ltd are sharing other benchmarks to provide more clarity on their progress on revenue in these gloomy times.

Coforge, for instance, keeps a weekly count of the number of large deal proposals submitted. "For sales execution, we do not only use the standard measures of TCV, ACV (total and annual contract value) signed or year-on-year growth delivered to measure execution effectiveness of our sales team," Sudhir Singh, chief executive of Coforge, said at the post-earnings call with analysts on 24 July. "The measures are important, but we have learned that for us at Coforge, the single most important measure for turning in year after year of sustained performance is every week's count of proactive large-deal proposals submitted."