During the fiscal year 2023, the top four 4 IT Companies Saw A 40% Decline in the addition of major clients. The difficulties these businesses confront in growing their customer bases are highlighted by the decline in new customer acquisition. The IT industry has had difficulty luring in new, significant clients, which may signal a change in the market’s dynamics or more competition, a story in the Economic Times said.
In FY23, the top four IT companies are: Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro , acquired 80 significant clients, or clients with transactions between $10 million and $100 million, compared to 132 clients in FY22.
The only IT company whose net customer acquisition stayed constant at 23 in FY23 was Infosys. No other companies increased their clientele.
TCS added 33 clients in FY23, a decrease of 57% from FY22. With a decrease of around 48.1%, Wipro added 14 clients in FY23 compared to 27 in FY22. Compared to the same period last year, HCL added 21 significant clients in FY23 as opposed to 30.
Now that technology is at the core of every company’s strategy, transformational investing will continue. Companies are, however, reducing discretionary expenditure due to the macroeconomic climate.
The Economic Times quoted Namratha Darshan, chief business leader of India Research at global tech research firm ISG, as saying,
We continue to see high demand for outsourcing, combined with softening demand for consultancy and project-based work.
According to industry analysts, as compared to the demand upcycle last year, weak macroeconomics and a slowdown in discretionary spending are the main reasons for the fall in client additions. Companies like HCLTech and LTIMindtree have seen that clients are prioritizing initiatives that provide them with faster returns and favoring cost-saving agreements to reinvest funds into transformation projects.
