Mid-sized IT companies giving tough competition to larger companies: Expert

Midcap IT sector seems to have gone relatively unnoticed on the back of frontline IT going through several pain points.

In an interview with CNBC-TV18, DD Mishra, Research Director at Gartner and Prasanna Oke, CFO of Sonata Software shared their readings and outlook on the same.

Everyone is talking about digital transformation of the businesses, said Oke.

International business of Sonata grew about 11 percent on a sequential quarter basis and other part of the business, the digital infrastructure – which is measured in absolute gross margins – has also grown, he said.

We have shown a healthy growth in margins on both these businesses, he further mentioned.

The traction for the mid-sized companies has gone up. “We are seeing that increasingly the customers would like to prefer the mid-sized companies,” said Mishra.

According to him, with the digitalisation the industry needs more flexible players who are more suited for that kind of requirements. That is where we see that the mid-sized companies are giving tough competition to the larger players, he said.

Mishra believes that automation also plays an important role and with automation the differentiation is coming down and the mid-sized companies are becoming stronger.