Mid-Tier Indian IT Firms Show Remarkable Growth in the Americas

In a surprising turn of events, mid-tier Indian IT companies have significantly outpaced their larger counterparts in the Americas during the 2024-25 financial year. With an aggregate incremental revenue of $538 million, these firms have left the tier-1 companies, which managed only $84 million, far behind.

HCLTech leads the pack among tier-1 companies with a contribution of $399 million to the total incremental revenue, thanks to a few large deals in the US. However, the overall performance in the Americas region, which accounts for 55% of revenue for tier-1 companies, was underwhelming.

Changing Market Dynamics

Experts like Phil Fersht, CEO of HfS Research, highlight a shift in market dynamics. Enterprise clients are now favoring smaller providers for their flexibility and intimate service models, moving away from traditional labor-heavy services. "Big is no longer beautiful as the focus on developing AI infrastructures takes hold," Fersht remarked.

Vertical-wise Performance

Investec reports that Infosys led market-share gains in BFSI and manufacturing, while HCLTech excelled in the communications vertical. TCS's gains were primarily driven by the BSNL deal. Both tier-1 and tier-2 companies saw persistent market share gains in the healthcare vertical, thanks to strong growth in the top customer.