**Coforge Surpasses Mphasis to Become India’s Seventh-Largest IT Outsourcer**
Coforge Ltd has ascended to become the seventh-largest software services outsourcer in India by revenue, overtaking Mphasis Ltd amid a competitive landscape in the mid-sized information technology sector. Based in Noida, Coforge, previously known as NIIT Technologies Ltd, reported a revenue of $442 million for the quarter ending June 2025, marking a sequential growth of 9.6%. In contrast, Bengaluru-based Mphasis saw a modest revenue increase of 1.6%, reaching $437 million during the same period.
In less than a year, Coforge has climbed three positions in the rankings, having surpassed Persistent Systems Ltd in September 2024 and Hexaware Technologies Ltd in December. The growth trajectory for both Persistent and Mphasis has slowed, attributed to client-specific challenges and sectoral concerns.
This shift in the revenue rankings is the fifth occurrence in India’s $283 billion IT industry within a span of two years, a timeframe characterized by global uncertainties and cautious client behavior. Notably, many of these changes have involved mid-cap firms. Analysts from Kotak Institutional Equities predict that Coforge is on track to break into the top six IT firms, which generate at least $1 billion in annual revenue. They project that Coforge will exit FY2026 with a revenue run-rate of $2 billion by the June 2026 quarter, a remarkable feat considering the current industry slowdown.
Mphasis’s decline can be linked to the loss of business from FedEx Corp, one of its long-standing clients, which constituted 8% of its revenue. The company’s revenue from logistics and transportation clients plummeted nearly 50% to ₹2,171 million (approximately $25 million) in the June quarter.
The leading players in the IT services sector include Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, and Wipro Ltd, collectively accounting for 26% of the industry. Tech Mahindra Ltd and LTIMindtree Ltd rank as the fifth and sixth-largest IT outsourcers, respectively.
Coforge’s growth is significantly bolstered by a 13-year software product delivery agreement with Sabre, a Texas-based travel technology firm, valued at $1.56 billion, signed in March this year. Additionally, the company benefited from its largest acquisition to date, the purchase of a 54% stake in Hyderabad-based Cigniti Technologies for $220 million in May last year.
Investor confidence in Coforge is evident, with its share price nearly quadrupling since May 2017, when Sudhir Singh took over as CEO, closing at ₹1,689.35 recently.
**FAQ**
**What factors contributed to Coforge’s rise in the IT outsourcing rankings?**
Coforge’s rise can be attributed to strong revenue growth, strategic acquisitions, and significant contracts, such as its deal with Sabre, which have enhanced its market position amidst a challenging industry landscape.
