Analysts cautious on growth from DXC for Mphasis

MUMBAI: IT servicesNSE -0.38 % provider MphasisNSE -1.27 %, which gets more than a fourth of its revenues from DXC Technology, may see “risks” in its business from the US-based client amid the latter’s plans to divest business units, changes in leadership and its acquisition of IT services company Virtual Clarity, analysts said.

DXC has been streamlining its business by cutting down on vendors and expanding its offshore presence, making analysts cautious about its dependency on Mphasis, with some pulling back expectations from the channel and others revising their estimates. Business from DXC accounts for up to 28% of Mphasis’ revenue.