Indian IT firms like Infosys, Wipro, HCL want to seal larger deals worth over $500 million only on one condition

Indian IT industry is witnessing a war like situation where top companies are looking to seal larger deals.

Companies such as Infosys, Wipro, HCL, etc are not shying away from taking up larger deals worth more than $500 million but they should have assured revenues.

Recently, Wipro CEO Abidali Neemuchwala had stated that his company will go for the kill if opportunity was large enough.

Meanwhile, Infosys only makes large payments owing to quality of the work they get.

In 2015-16, Infosys had spent around Rs 400 crore on contract costs.

While bidding for larger deals may be a new concept for Indian companies, globally, firms such as IBM, HP and Accenture have been doing this for years.

In 2012, IBM raced past Infosys and Wipro and paid well over $100 million upfront in cash to win a $1-billion outsourcing contract from Mexican cement giant Cemex SAB.

Also, HCL Tech recently bought out the external IT business of Volvo, a deal worth nearly $1.75 billion.