Indian IT companies are trying to broad-base their businesses across verticals to reduce their dependence on a few select areas. For example, the revenue contribution for HCL Tech from the US has increased from 62.5% in FY18 to 64.1% in FY23. But in the same period, it brought down its BFSI exposure to 20.7% in FY23 from 24.9% in FY18.
Peter Bendor-Samuel, CEO at Everest group, said, “There is clearly concentration risk for TCS, Infosys, and Wipro in the BFSI which is the largest vertical for each of these firms. This BFSI concentration also carries geographic concentration as this work is largely out of the US and the UK with some exposure in Hong Kong and Singapore.”
