India's mid-tier IT firms gain share from industry goliaths
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2024
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Source: reuters
- Market Share Shift: Mid-tier IT firms in India's sector gained market share from larger companies due to clients cutting back on spending during economic uncertainty.
- Focus on Short-term Deals: Smaller IT firms focused on short-term cost-cutting deals, which proved beneficial amid slowing demand in major markets like North America and Europe.
- Challengers in Fortune 500 Accounts: Companies like LTIMindtree, Coforge, Mphasis, and Persistent Systems are increasingly seen as challengers in winning Fortune 500 accounts.
- Outperformance Potential: Analysts suggest that mid-tier IT firms could outperform larger rivals once discretionary spending improves.
- Financial Performance: Stock prices of Mphasis and Persistent Systems rose significantly in the past year compared to the broader Nifty IT Index, reflecting their market share gains.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
