$100 million clients: TCS, Infosys lead race – Times of India

BENGALURU:TCS and Infosys, following the pandemic, have onboarded 12 new clients, each contributing $100 million or more in revenue. Meanwhile, Wipro and HCLTech have shown slower progress, gaining only seven clients within this revenue bracket.
By the end of the 2023-24 fiscal year, TCS maintained 62 clients in this category, whilst Infosys reported 40. Wipro and HCLTech each maintained 22 such clients.
In the year before Covid, TCS, Infosys, Wipro and HCLTech managed 49, 28, 15 and 15 clients respectively, each generating revenue of $100 million or higher.

Ray Wang, principal analyst at Constellation Research said, “We believe $100 million deals come from massive consolidation of competitor projects. To win those deals, you need to take out existing competitors inside those companies. So, these deals tend to include multiple service lines for multiple years” He added that whilst Srini Pallia possesses the expertise to execute large deals, initiating the process remains a significant challenge.
“Everybody is trying to win larger deals, but they are not that successful. In Wipro’s case, the earlier management under CEO Delaporte didn’t perform well in the large deals when others were winning. In HCLTech’s case they won large deals such as Verizon but also lost on insourcing like Allstate,” Pareekh Jain CEO and lead analyst at Pareekh Consulting said.
IT firms have acknowledged a deceleration in large deals during their earnings presentations. They’ve indicated receiving smaller-scale deals due to limited discretionary spending since the Russia-Ukraine conflict and potential recession concerns.
From the pandemic year until the 2021-2022 financial year, TCS, Infosys and Wipro each gained more than six clients in this segment. Subsequently, growth slowed considerably, with minimal or no additions to accounts typically driving growth for these leading firms. Data showed that revenue growth continued until the early 2021-22 financial year, followed by a decline. A recovery began during the latter part of the 2023-24 financial year.