In Q4 FY25, mid-sized Indian IT firms such as Persistent Systems, LTIMindtree, Mphasis, L&T Technology Services, WNS, and Tech Mahindra outshined the Big Four (TCS, Infosys, Wipro, HCLTech) with robust revenue growth and performance.
Persistent Systems recorded a remarkable 25% year-on-year revenue growth, while the Big Four struggled with single-digit or negative growth.
LTIMindtree reported a positive performance driven by AI-powered deals, showcasing a 9.9% year-over-year revenue increase.
Mphasis achieved strong sequential growth with 59% of deal wins being AI-led, emphasizing the integration of tech and AI in their strategy.
L&T Technology Services achieved a 17.5% year-over-year revenue growth and emphasized automation and AI in their narrative for future growth.
WNS reported flat revenue growth but projects a 7-11% growth in the next quarter, with focus on AI-led deals and contributions from Kipi.ai.
Tech Mahindra showed signs of improvement with a 77% increase in net profit despite flat revenue, highlighting operational focus and margin discipline.
Mid-sized firms' early investments in agentic AI through acquisitions and partnerships are paying off, showing agility and innovative strategies in the rapidly evolving IT landscape.
The shift towards agentic and generative AI among mid-sized IT firms is a significant differentiator, enabling autonomous workflows and competitive advantage.
Companies like LTIMindtree and Mphasis are leveraging partnerships with startups for AI technologies to stay ahead in the AI-driven market.
The focus on foundational AI issues like privacy and governance, along with agility in adopting new technologies, is setting mid-sized IT firms apart from larger players in the industry.