**Coforge and Persistent Systems Navigate Tech Spending Cuts with Innovative Metrics**
In the face of uncertain macroeconomic conditions that have led clients to reduce technology spending, companies like Coforge Ltd and Persistent Systems Ltd are adopting unique benchmarks to clarify their revenue progress. Coforge, for instance, tracks the weekly number of large deal proposals submitted, a strategy highlighted by CEO Sudhir Singh during the company’s post-earnings call on July 24. He emphasized that while traditional metrics such as Total Contract Value (TCV) and Annual Contract Value (ACV) are important, the weekly count of proactive large-deal proposals is the most critical measure for sustained performance.
Coforge reported a revenue of $442 million for the April-June period, marking a 9.6% sequential increase, largely attributed to a significant $1.56 billion deal with Sabre, a Texas-based travel technology firm. This achievement has positioned Coforge as the seventh-largest IT services company in India, surpassing Mphasis Ltd, which reported $437 million in revenue, up 1.6% sequentially.
In addition to its sales strategies, Coforge is also pursuing major initiatives, which may involve geographic expansion, new business units, or partnerships. Singh noted that the company has never abandoned any of its significant projects, stating that if a big bet does not yield expected results, the team is reassigned, but the initiative continues to be pursued.
On the other hand, Persistent Systems, a smaller competitor, is focusing on its executable order book as a key performance metric alongside traditional contract values. CEO Sandeep Kalra explained during the company’s post-earnings call on July 23 that they measure revenue conversion through ACV and TCV, but also emphasize the importance of the executable order book.
Persistent Systems concluded the last quarter with $389.7 million in revenue, reflecting a 3.9% sequential growth, with a substantial portion of this revenue coming from the banking and financial sectors, its primary revenue source. The growth rates for both Coforge and Persistent Systems were among the highest for mid-cap IT companies in India, with only Sonata Software Ltd surpassing them.
As these companies adapt to the changing economic landscape, their innovative approaches to measuring success may provide valuable insights for the broader IT services sector.
**FAQ**
**What strategies are Coforge and Persistent Systems using to measure success amid reduced tech spending?**
Coforge focuses on the weekly count of large deal proposals submitted, while Persistent Systems emphasizes its executable order book alongside traditional contract values to gauge performance.
