Midcap IT firms to face slowdown as client spends come down

Midcap IT firms, which were growing at around 25-45% year-on-year during the last few quarters due to the move towards digitisation and cloud, which started during the pandemic, are likely to face constraints this fiscal. Some may also also lag behind the already slowing big IT majors, analysts said.

Some midcap IT companies like Mphasis and Birlasoft have faced client problems recently, with LTTS having to resolve its visa issue by paying compensation.