Indian IT firms pivot to $1 million-$20 million short-term contracts amid AI
Indian IT companies are switching gears and taking on more short-term, smaller contracts (think $1 million to $20 million) instead of waiting for those massive multi-year deals.
With clients feeling cautious, especially as AI changes the game, firms like HCL Technologies and Coforge are seeing a jump in new clients through these bite-sized projects.
IT companies' smaller deals boost profits
These smaller deals aren't just keeping the lights on, they're actually helping boost profits and make revenue more predictable.
Plus, experts say this approach helps IT firms stay flexible and closer to what clients really need right now.
As Sandeep Gogia, MD, Tech & Digital, Equirus Capital, puts it, "AI is compressing the value of traditional effort-based work, while clients remain reluctant to commit immediately to large, multi-year transformation programs. IT companies are therefore pursuing more pilots, discovery engagements, implementation modules and short-cycle projects to protect growth and establish themselves within emerging AI budgets," said Gogia.