India's mid-tier IT firms gain share from industry goliaths
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2024
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Should l Buy ?
Source: reuters
- Market Share Shift: Mid-tier IT firms in India's sector gained market share from larger companies due to clients cutting back on spending during economic uncertainty.
- Focus on Short-term Deals: Smaller IT firms focused on short-term cost-cutting deals, which proved beneficial amid slowing demand in major markets like North America and Europe.
- Challengers in Fortune 500 Accounts: Companies like LTIMindtree, Coforge, Mphasis, and Persistent Systems are increasingly seen as challengers in winning Fortune 500 accounts.
- Outperformance Potential: Analysts suggest that mid-tier IT firms could outperform larger rivals once discretionary spending improves.
- Financial Performance: Stock prices of Mphasis and Persistent Systems rose significantly in the past year compared to the broader Nifty IT Index, reflecting their market share gains.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
