Deal Wins for IT Firms May Hit Their Margins: Analysts | In the News

The large deals that IT firms like HCLTech and Infosys have recently bagged from companies like Verizon, State Farm, Liberty Global, and Danske Bank, respectively, are unlikely to be margin accretive for them.

According to Peter Bendor-Samuel, CEO of Everest Group, rebadging often delays margins and carries risk, so margins are likely to be hit. However, he added that rebadging deals are often linked to cost-cutting initiatives, so more of such deals may come through in the days to come.

Read more in Financial Express.

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