Bangalore: Indian IT companies who export their services are now resorting to dump small clients to reduce costs and focus more on strategic customers, reports Economic Times.

Small clients who do not bring more than a few hundred thousand dollars revenue at most in a year for the company are usually referred to as “tail accounts” and these are the ones who are getting axed from the Indian IT companies that look to cut cost of serving accounts and channeling sales hands to customers with potential to spend more.  

"We are knocking off many of our tail accounts which do not have a value proposition," TK Kurien, chief executive of Wipro, told ET in a recent interview.

"That's a conscious decision to improve the quality of our revenues," he added. Over the past few quarters, Wipro has dumped some 40 clients, to bring down its tail accounts to 45 and leaving revenues of about $8 million.

To entertain the clients who are not adding bulk revenue or value is not feasible options in the wake of $100 billion Indian IT-BPO industry facing slow growth, as the clients in recession hit Europe and post US’ face off with recession, delaying decisions on technology spending. And to make matter worse, rising wages and higher visa-related expenses are also hindering the good revenue options for Indian IT firms.