Why deal sizes are shrinking for top Indian IT companies
Synopsis
IT service providers are experiencing shrinking average deal sizes to as low as $25 million due to cost efficiencies, GenAI transformation, and shorter tenure projects amid uncertain macro-economic conditions. Despite an increase in large deal volume during FY23, industry analysts report a decrease in the average value of those deals. This comes even though Indian software exporters remain major players on the global stage.
The average deal size for information technology (IT) service providers in India and globally has shrunk to as low as $25 million over the last few years, according to analysts. This is on account of macroeconomic headwinds and the disruption caused by generative artificial intelligence (GenAI), which are pushing clients to seek greater cost efficiencies, they said.Although the number of large and mega deal wins has risen in FY23, analysts said
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