Vendor consolidation and cost optimisation to drive mid-cap IT growth in Q3

Mid-cap Indian IT services companies are expected to report a sequential revenue growth, in constant currency terms, of 0.5–4% for the December, 2025 quarter, as stabilising demand conditions and the slowing pace of contract ramp-downs provide modest relief after several muted quarters, analysts said.

Experts suggest the December quarter will be characterised less by any cyclical recovery in technology spending and more by execution of deals signed earlier, particularly vendor consolidation and cost-optimisation programmes. Discretionary spending remains tight across most client segments, experts observed.