Indian IT sector struggles to maintain momentum

India’s IT services sector appears to be far from taking another victory lap. Both large and mid-size companies, which witnessed a stupenduous two-fold growth between FY10 and FY15, registered lesser growth in the subsequent five years between FY15 and FY19. Disappointingly, fewer companies such as Mindtree and L&T Infotech catapulted into the $1-billion club in the past five years, lower than what was seen a decade ago when already billion dollar entities like TCS and Infosys more than doubled their income effortlessly.

An analysis of ten companies — comprising five large and five mid-size firms — indicates that India’s IT firms aren’t in a sweet spot, with some in the mid-rung struggling due to indirection. Complicating their woes, the recent downturn in the global IT industry, led by the US and European regions, have further marred Indian IT firms’ chances of achieving the unprecedented growth seen a decade ago. Needless to say, the troika — TCS, Infosys and Wipro — cumulatively account for over 70 per cent of total sales of the Indian IT-software industry even today.