Price War for Deals to Hit IT Firms’ Margins | In the News
Stiff competition in the large deal space among the large IT services companies is leading to a fall in pricing, stoking fears of a margin headwind in the coming quarters. According to industry insiders, though many numbers of cost takeout deals are coming to the market as enterprises are looking to save costs, competition is rising among both Indian and global players to increase their shares.
“It is clear that the pipelines are large and stacked with cost-saving deals. Most large firms have a significant number of mega deals in their pipelines; however, with everyone going after these deals, the close rates will likely drop,” Peter Bendor-Samuel, CEO at Everest Group.