India’s mid-tier firms gain share

BENGALURU: Mid-tier firms in India’s US$254bil information technology sector took market share from industry goliaths in recent quarters as clients curtailed discretionary spending amid inflationary pressures and economic uncertainty, analysts say.

Unlike their larger rivals, such as Tata Consultancy Services and Infosys, mid-tier IT firms tend to focus on short-term deals aimed at helping clients cut costs rather than chase large-scale projects.

The practice has paid off in an environment of slowing demand in prominent markets such as North America and Europe.

LTIMindtree, Coforge, Mphasis and Persistent Systems are “increasingly viewed as challengers in ‘winning’ Fortune 500 accounts, aiding the share gain process,” Kotak Institutional Equities said. — Reuters