Indian IT giants are preparing for a wave of contract renewals worth about $13 billion to December end, offering companies like Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro a chance to secure a share of the info tech market.This comes as clients are pushing for cost savings and AI-driven efficiency, according to data from research and analyst firms shared with ET. According to industry estimates, deal renewals this year could surpass the $14 billion recorded in 2024.In India’s $283 billion software export industry, large deals usually start at $100 million, while mega deals exceed $500 million. More than 600 contracts are due for renewal in the second half of 2025, with values ranging from $20 million to over $1 billion, and some topping $2 billion, according to US-based Everest Group.Major deals include TCS’s partnerships with Star Alliance and Nielsen, Infosys’ contracts with Daimler AG and GE Appliances, HCLTech’s agreements with Ericsson and UK insurer Chesnara; and Wipro’s deals with German utility E.ON, Finland’s Fortum, and Brazil’s Petrobras.Earlier this month, TCS bagged a $640 million order from Danish insurer Tryg on a seven-year contract, its first major deal since January 2024. Wipro renewed a two-year contract with European food wholesaler Metro, extending a previous four-year partnership, ET reported.ISG, a tech research firm, says over 800 renewals are expected, including many from financial services and manufacturing, with mega deals worth around $1.7 billion. In the first half of 2025, about $1.3 billion in mega deals were in the renewal pipeline, covering roughly 70% of global IT deal activity.“The number of mega awards contracts with annual values of $100 million or more has been rising over the past two years. Large deal activity remains strong in 2025,” Namratha Dharshan, chief business leader at ISG, was quoted as saying by ET.She added, “The combination of strong mega deal renewal profile, along with the current macro environment that supports the creation of new mega awards, suggests that large deal activity will remain strong in 2025. This is because enterprises continue to be focused on reducing costs, and providers are focused on shaping large deals.”Darshan further explained that while big deals are gaining traction, deal sizes in the business process outsourcing (BPO) sector are generally getting smaller.She added that these smaller deals reflect cautious discretionary spending, which has remained subdued over the past 2–3 years due to challenging macroeconomic and geopolitical conditions.Yugal Joshi, partner at Everest Group, said average deal sizes are now slightly under $100 million. “Last year, (in the) same period, there were over 700 deals, and they were typically of larger sizes…We have begun to witness initial signs of irrational deal constructs, especially around task automation due to AI agents in the market, and we are not confident that all providers will meet the intended delivery objectives,” he told ET.Renewals come amid a slowdown in global tech demand triggered by the US-led tariff war, affecting India’s software export sector.Clients are increasingly seeking discounts during renewals and demanding AI-led benefits. Joshi added that AI is now playing a major role in deciding which companies win contracts, unlike before when around 90% of renewals went to incumbents.
