IT outsourcing deal size dropped to $17.2 mn from $22.9 mn

The average outsourcing contract deal size amongst the Indian IT services vendors has come down from $22.9 million in H1 2018 to $17.2 million in H1 2019.
IT services India companies
The average contract duration for Indian IT services vendors has come down from 40.2 months to 35.8 months, according to a report from GlobalData.

Leading Indian IT service vendors include Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Tech Mahindra, among others.

“The trend is in its infancy, which gives the Indian IT players sufficient time to adapt to the changing business environment and transform themselves,” Nishant Singh, head of Data for Technology and Telecoms at GlobalData, said.

Indian IT services vendors such as TCS, Infosys, Wipro and Tech-Mahindra have all shown steady revenue growth, with most other Indian vendors too having reported solid revenues in their recent quarters.

Apprehensions about profitability reflect in the Indian IT vendors’ latest financial reports. Profit margins of most of leading IT vendors including TCS, Infosys and Wipro have faced downward pressure.

Indian IT vendors are improving their capabilities through investment in digital technologies, partnerships, mergers and acquisitions.

The report said Indian IT Services vendors’ traditional business model of large offshore contracts are under threat now.

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