Mid-cap IT firms stumble through Q1 over client pressure\, H1B visa costs

Mid-cap IT firms stumble through Q1 over client pressure, H1B visa costs

Barring Mphasis, the performance of most companies has been lacklustre, as client spending took a major setback for these vendors

Romita Majumdar  |  Mumbai 

After a year of above-estimated performance, Q1FY20 has ended on a dismal note for most of the mid-cap IT services firms, with client pressure and visa costs eating into their growth numbers. Barring Mphasis, the performance of most companies has been lacklustre, as client spending took a major setback for these vendors.

Analysts have noted the strong demand for talent has not only spiked visa and employee costs for these companies, it has also made it difficult for them to redeploy employees at short notice in case any clients pull back, resulting in margin pressure. Even during their ...

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First Published: Mon, July 29 2019. 01:08 IST