$20 Billion IT Contracts Up for Renewal Amid GenAI Wave and Global Uncertainty

India’s top IT firms, including TCS, Infosys, HCLTech, Wipro, and Tech Mahindra, face $20 billion in contract renewals this year. These deals span key sectors like BFSI, retail, and manufacturing but come amid global uncertainties, including US tariffs and inflationary pressures. Renewal timelines are extending by up to a month due to cautious market sentiment.

Generative AI (GenAI) is taking center stage in redefining deal negotiations as customers look for cost optimization and AI-driven productivity enhancement. Indian IT firms are set to retain 90% of such deals with the help of GenAI-based cloud modernization and infrastructure refreshes.

However, analysts warn that postponed renewals would impact revenue cycles. IT companies have to innovate more to be competitive while supporting evolving client needs.

 

Source: Business Standard, Moneycontrol, Economic Times