What is the Secret Ingredient for the Corporate Boost? 

Aggressiveness has turned out to be the prime motto for large corporate’. Even companies like Infosys and Wipro are crushing the SMB growth with massive deals over $50 million, stated Ankita Somani, IT analyst with brokerage firm Angel Broking.

This abrupt increase in sales expenditure by larger companies is clearly creating ripples across the SMB sector. Earlier medium sized companies mainly benefited from their sharp decision making skills in particular verticals. These skills made SMBs to crack larger deals and get good revenue. Another reason was the 2008-09 recession time-frame where SMBs started growing at a faster rate when compared to bigger companies.

"But the uncertain macroeconomic environment and lack of large deal signings have resulted in tier-II IT companies growing slower than tier-I vendors," said Ashish Aggarwal of Tata Securities, as quoted by TOI.

“But today, they are facing tough competition from large firms focused on fixed price contracts and non-linear growth that offers better value proposition to their clients. Mid-sized firms don't have the scale to service large contracts. They can be a cog in the wheel and not the whole wheel," said Pradeep Udhas, partner and head of IT/ITeS in consulting firm KPMG in India.

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