Indian IT companies may outdo MNCs like IBM and HP as mega billion-dollar IT contracts come up for renewal. London-based IT research firm Ovum estimates that contracts worth $13 billion will be up for renewal this fiscal year.
Hansa Iyengar, IT analyst in Ovum, said that many large deals coming up for renewal have a sizeable infrastructure component to them and most of these involve very large, complex legacy systems that need to be modernized. “We have anecdotal evidence of Western incumbents walking out of the deals as they perceive them to be too risky for the given contract values and these are some of the deals that the Indian vendors are picking up,” she said.
Last year Cognizant bagged a $2.7 billion deal from HealthNet and Wipro won a $1.2 billion IT outsourcing deal from Canadian logistics and utilities provider Atco.