IT midcaps pull away from delivery model linked to headcount

Mid-tier IT firms such as Persistent Systems, Coforge, and Mphasis are pulling away from the traditional, headcount-driven delivery model that has long defined the sector while posting revenue gains that far outpace any increase in their workforces, as productivity gains from AI-led deals become more visible across select companies.

Persistent Systems‘ revenue rose 23.6% year-on-year to ₹3,580 crore in the September quarter, with headcount inching up just 1.1%. Coforge’s revenue jumped 31% in the same quarter and its headcount rose 2%. Mphasis…