Birlasoft’s third quarter revenue grew by 2.5% quarter-on-quarter (q-o-q) to Rs 1,343 crore, with revenue from the top 10 and top 20 clients grew at 3.2% q-o-q, Angan Guha, CEO and MD, Birlasoft, said in an interaction with FE. Guha added, “Our client mining strategy is going very well, and that is something we are incredibly proud of.”
The top five clients of Birlasoft, contributing 33.6% revenue in Q2, increased their share to 34.5% in Q3. Similarly, top 10 and top 20 clients increased their revenue share from 51% and 63.9% in Q2 to 52% and 64.7%, respectively.
While actively mining large clients, it is also rationalising its tail – its number of active clients declined to 272 in the December-ending quarter, down from 278 in the September-quarter. The number of clients generating $1 million and $5 million in revenue for the company also decreased by two and one, respectively.
Birlasoft is experiencing a rise in revenue from fixed-price and fixed-monthly type contracts, jumping from a 60.9% share in total revenue in Q2 to 62.7% in Q3.
Guha said having more of fixed contracts is part of a strategic initiative. “We want to pivot towards more annuity work and more managed services work, which is why you see a little bit of an uptick on the fixed price side.”
“In our business, anytime you do more repeatable work, it is not people dependent. It is more process dependent. You can use Gen AI to disrupt the process – automate the process, so it’s not people dependent. On the other side, when you do more AI work, when you do more digital work, when you are participating in customers’ transformation journey, you may decide along with client to build your people from a time and material perspective.”
Regarding clients’ sentiments and budgets for the year, Guha said, “Clients are cautiously optimistic as it’s an election year in both US and UK, which are two of our biggest markets. Most clients haven’t firmed up their budgets for 2024 and they will do it over the next 30-40 days.