India’s IT Firms Shift Focus to Smaller Deals Amid AI Disruption
India’s IT Firms Shift Focus to Smaller Deals Amid AI Disruption
IN · Published Aug 5, 2026
India's IT sector is adapting to the rapid changes brought by artificial intelligence (AI) by focusing on smaller, short-cycle projects to maintain profit margins and address cautious client spending.
According to The Hindu BusinessLine, companies like HCL Technologies, Coforge, and Tech Mahindra are expanding their client base in the $1-20 million deal range.

Impact & Risks

The shift to smaller deals could affect the revenue growth of IT companies in the short term, as these projects typically generate lower immediate returns compared to large-scale contracts. However, this approach may lead to better client retention, higher margins, and improved revenue predictability over time. Clients benefit from reduced uncertainty and more flexible solutions, but the industry faces the challenge of balancing short-term engagements with long-term strategic goals.

Related News