The global economic uncertainties notwithstanding, three of India’s major IT companies reported a 15 per cent sequential rise in the total value of contracts won in Q4 of FY25, though largely led by deals in the $1-5 million category. This is the second quarter when the companies have increased deal wins based on smaller deals, the data shows.

According to Greyhound Research, the rising prevalence of $1–5 million deals reflects deep-seated uncertainty in client boardrooms, particularly as U.S. tariff rhetoric and regulatory scrutiny continue to muddy the waters for global services delivery.

“FY26 will be marked by “selective wins,” not sweeping growth—clients are segmenting large transformation programmes into bite-sized, milestone-driven contracts that can be paused or refactored quickly if the external climate worsens. The new gold standard is not contract value, but resilience and optionality,” said Sanchit Vir Gogia, Chief Analyst & CEO at Greyhound Research.

Tata Consultancy Services (TCS), Infosys and Wipro together reported deal wins worth $18.7 billion in Q4, compared to $16.2 billion reported in Q3, with TCS accounting for bulk of the wins at $12.2 billion. It may be noted that on an annual basis the deal size for the three companies declined marginally by 1 per cent as both TCS and Infosys had done particularly well in Q4 of FY 2024.

“Our record Q4 TCV (total contract value) of $12.2 billion demonstrates our ability to gain market share. North America TCV reached an all-time high of $6.8 billion. BFSI TCV was $4 billion, and Consumer Business Group contributed $1.7 billion. This impressive performance stands out in the absence of mega deals,” said K Krithivasan, CEO at TCS.

Small deals lead the win

Overall, the million-dollar client base for the three companies jumped 32.5 per cent from 2,294 in the quarter of last year client to 3,040 in the quarter of this year, while that in the $10 million, $50 million and $100 million buckets saw declines.

TCS added 38 new clients to its million-dollar base and 2 new clients in its 100 million-dollar base. Overall, client contribution grew for TCS barring the 50 million-dollar base where the number reduced by 9 clients.

Infosys reported 33 new million-dollar clients and 2 new 50 million-dollar clients. It’s a large deal, TCV stood at $2.6 billion as compared to $2.5 billion in Q3, up 4 per cent sequentially. For FY25, deal TCV stood at $11.6 billion.

Speaking on the Infosys performance, Motilal Oswal Financial Services said, “Roughly two-thirds of the revenue decline was due to lower third-party costs and revenues, as some deals slipped out of the quarter. Third-party costs and revenues are expected to be lower in FY26 versus FY25, given the current deal pipeline. Recently won deals have started ramping up during 4QFY25. No major rampdowns or closures were observed. Pricing remained stable during the quarter. The company sees opportunities for pricing improvement through value-based selling and does not expect pricing pressure from vendor consolidation deals.”

Good quarter for Wipro

Wipro reported low number of deal wins sequentially and annually but in terms of deal size, the company improved both sequentially and annually. Further, large deals TCV increased by around 83 per cent to $1,763 million with total bookings of $3,955 million. The company also won two mega deals this year: a five-year deal to deliver AI-powered end-to-end IT services across 200 countries and a partnership with a global food distributor taking over its IT infrastructure and corporate application which includes HR, finance and legal systems.

Noting that the company closed 17 large deals of $1.8 billion in Q4 and 63 large deals of $5.4 billion in FY25, Nuvama Research said that large deals for Wipro signed will take some time to ramp up, leading to lower revenue in short term. Deal win to revenue conversion is lower as also seeing a cut in discretionary spending and delay in some projects. Overall pipeline is strong with decent contribution of large and small deal.

“Given uncertainty in the environment, management expects clients to take more measured approach on spending especially discretionary spends. Wipro is guiding -3.5 per cent to -1.5 per cent in CC terms. Will have margin headwind in H1 due to deal ramp up, growth will be priority. Will try to keep margins in close band but due to growth decline, it will be a tall task,” said Nuvama.

America shows poor performance for TCS and Infosys

Geography-wise revenue from North America showed an annual decline for both TCS and Infosys. For TCS, revenue from North fell by 1.9 per cent on an annual basis while India showed the highest growth at 33 per cent followed by Middle-East and African regions at 13.2 per cent. UK and continental Europe grew at 1.2 per cent and 1.4 per cent respectively.

“Europe with 1 per cent QoQ USD growth, performed well on the back of large deal wins from Q3FY25. Americas showed muted performance at -0.2 per cent QoQ growth. Middle East and Africa grew well,” said ICICI Securities in its report.

In case of Infosys, revenue from the North American market fell by 0.8 per cent while that from Indian market grew by 39 per cent. Rest of the world, revenue fell 4.5 per cent annually for Infosys. According to Motilal Oswal, Europe’s automotive sector has experienced some softness. It grew at three times the company’s average, supported by strong client mining and large deals.

Wipro showed an interesting deviation from the geographical trend, reporting a more prominent degrowth in Europe at 8.3 per cent, followed by a decline in the Asia-Pacific and Middles East and African regions by 7.3 per cent and 2.7 degrowth in America 2. America 1 was the only region that grew by 5.4 per cent.

“If you look at our revenues for last year on a full year basis, Americas has actually grown 1.2 per cent and it is Europe which has shown a degrowth. In fact, APMEA had a degrowth, but in Q4 they actually turned sequentially positive. In Europe, we have a new leadership team. We just won a large deal, Phoenix Group, which will start kicking off in few months from now as per the contract terms. If you focus on the deals on the table, we should be able to look at a positive momentum in Europe in the next coming quarters,” said Srini Pallia, CEO and MD at Wipro.

According to Greyhound Research, the rebalancing toward Europe is no longer optional. With the U.S. market mired in tariff tension and regulatory overhang (e.g., ongoing discrimination probes), Indian IT firms must diversify risk by scaling their European and emerging market operations. Europe, particularly the DACH, Nordics, and U.K., is seeing steady demand for sectoral cloud, GenAI, and digital infrastructure, offering a stabilising effect for vendors facing headwinds in the Americas.

Published on April 20, 2025