Infosys managed to add a number of smaller clients last financial year — a reflection of the tough times it had to go through — while its peers managed to grab some large-size deals.
In fact, last year, Infosys added 49 clients who gave it an annual revenue of $1 million, and 23 clients yielded a revenue of $5 million. The number of $100 million clients for Infosys dropped to 12 from 13 in the previous year.
Interestingly, it was a good year for Wipro, which managed to add three $100 million clients last year. In fact, industry leader Tata Consultancy Services added just two $100 million clients.
Many of the small deals that were announced are follow-on pieces of work at existing clients. There will always be a focus on such transactions, regardless of the type of firm. The market has changed; the average deal is much smaller than what it used to be, said Sid Pai, Partner and President of the research firm Information Services Group, Asia Pacific.
S.D. Shibulal, co-founder, CEO and Managing Director, Infosys, speaking to analysts post the company’s annual financial results, said that uncertainties continue in the broader economic environment. “We are living in a very fragile environment,” he said.
The global environment has not completely recovered from the downturn as well as the Euro Zone crisis. Though the clients have finalised their budget, “we have to see whether it improves the decision making cycle, including discretionary spend,” he said. “We are confident of navigating the short-term challenges due to uncertainty in the environment.”