Indian IT companies are seeing a clear change in how global clients are buying technology services in FY26, with large transformation contracts increasingly being split into smaller, faster-to-execute deals.
Executives across companies linked the trend to how artificial intelligence (AI) projects are being adopted. Rather than committing to large-scale programmes from the start, clients are beginning with smaller implementations and scaling them over time.
"Clients aren’t cutting technology spend, but they are changing how they commit to it. With AI still evolving, enterprises prefer smaller, phased programmes that deliver quick returns and remain flexible. Large transformations are happening more slowly, as clients are testing value first before scaling investments," said an analyst who tracks the sector at a domestic broking firm.
During its Q2 FY26 earnings call, Infosys' management said clients were “prioritising shorter-cycle, high-ROI programs” and were “taking a phased approach to large transformations”. Management added that revenue growth during the quarter was driven more by pricing and execution than by volumes, pointing to controlled deal sizes despite continued client engagement.
In the Q3 FY26 earnings call, Infosys again referred to cautious client behaviour, noting that “volumes continue to remain soft” even as deal pipelines stayed active. Infosys added low double-digit clients in the $10 million plus category between Q1 and Q3 FY26, while the $100 million client count remained flat during the period.
Tata Consultancy Services (TCS) made similar remarks during its Q1 and Q2 FY26 earnings calls. In the Q1 FY26 call, the company said that “decision cycles remain elongated”, while in the Q2 FY26 call, management stated that clients were “approving programs in smaller chunks”.
From Q1 to Q3 FY26, TCS added 23 clients in the $1 million plus category and 10 in the $20 million plus category, while $100 million plus clients rose by two.
Meanwhile, HCLTech during its Q3 FY26 earnings call said that it reported new bookings of $2.6 billion and said this was “the first time we crossed the $2.5 billion mark without a contribution from any mega deal”.
Between Q1 and Q3 FY26, HCLTech added 20 clients in the $10 million plus bucket and 15 in the $20 million+ bucket, compared with one addition in the $100 million+ category. Wipro’s management also said during its Q1 FY26 earnings call that the clients were “prioritising smaller, faster decision-making engagements with near-term outcomes”. Between Q1 and Q3 FY26, Wipro added 11 clients in the $10–20 million bucket and six in the $20–50 million bucket, while $100 million plus clients fell by two.
While deal fragmentation has become more visible in FY26, large and mega-deals have not disappeared, but they are fewer and slower to ramp up, with work split into phases.
All five top IT companies have reported a strong pipeline during the first three quarters of fiscal 2026. Tech Mahindra had also announced a major European telecom deal valued at over $500 million during the year. Wipro also won a 10-year deal worth over $600 million from Phoenix Group in March 2025.