India’s mid-tier IT services companies are continuing to outperform larger industry rivals, driven by sharper sector focus, faster execution, and growing demand for AI-led transformation services.
During the March quarter, firms such as Coforge, Persistent Systems, Mphasis, and LTM reported year-on-year revenue growth between 7% and 28% in constant currency terms. In comparison, larger companies including Infosys, HCLTech, and Tech Mahindra recorded slower growth ranging from 0.6% to 3.9%, while Tata Consultancy Services and Wipro reported revenue declines of 2.4% and 1.6%, respectively.
Industry experts believe mid-sized firms are gaining momentum because of their focused approach and leaner structures. Phil Fersht, CEO of a US-based IT advisory firm, said: “The mid-tier firms are benefiting from being more focused, more aggressive, and frankly more adaptable than many of the Tier-1s right now.”
According to analysts, these companies are concentrating on high-growth areas such as cloud engineering, AI-led modernisation, BFSI, healthcare, data, and platform services. Persistent Systems’ BFSI business grew nearly 25% year-on-year, while Coforge’s travel segment expanded over 50% despite ongoing geopolitical tensions in West Asia.
Experts also pointed out that mid-tier companies are focusing deeply on specialised sub-verticals within industries. This includes areas like wealth management, investment banking, and commercial banking under the BFSI sector.
Their leaner organisational structures are also helping them move faster, automate processes efficiently, and place senior talent closer to clients. Analysts said many mid-tier firms are offering flexible pricing models and outcome-based contracts, helping them win more deals in the mid-market segment.
Persistent Systems added 791 employees during the quarter, while Coforge added 436 employees. Mphasis added 96 employees, whereas LTM reduced its workforce by 8 employees.
Experts added that these companies are not necessarily competing only on lower pricing, but on agility, domain expertise, and stronger alignment with client requirements in a rapidly evolving AI-driven market.
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