Mid-cap IT Firms Capture 58% of 2025 Incremental Revenue as Enterprise Demand Fuels Diversification of Vendor Pools for Large Deals

Mid-Cap IT Services Firms Capture Disproportionate Share of Industry Growth in 2025

Revenue Growth: Mid-cap IT services firms accounted for nearly 58% of incremental revenue added by leading technology service providers in 2025, cornering a disproportionate share of industry growth.

Market Share: Mid-sized service providers now account for 8.4% of the total revenue among the 24 leading IT services firms tracked by Everest Group, up slightly from 7.8% in 2024.

Deal Wins: These companies captured 25% of total incremental revenue and 58% of incremental revenue on an organic constant-currency basis in 2025, indicating their growing ability to win large deals.

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Recent Deal Announcements:

• Zensar Technologies signed a $210 million financial services contract.
• Coforge secured a $158 million engagement with a UK-based client.
• Mastek won a $100 million contract with the UK Home Office.
• Larsen & Toubro Technology Services (LTTS) announced a $100 million deal with a European MedTech client.

Industry Trends: The shift towards mid-cap IT services firms reflects a structural change in the outsourcing landscape, where large deals are no longer the exclusive territory of tier-one IT service providers.

Key Factors:

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• Mid-tier firms have strengthened their ability to compete for large contracts by expanding sales teams, tightening deal governance, and becoming more flexible in commercial structures.
• Mid-sized players are willing to pursue transformation programs that often involve tighter margins and require upfront investments.
• Many mid-cap firms have built strong domain expertise in specific industries and functions, enabling them to win larger engagements within existing accounts.

Market Share Shift: As mid-tier companies develop the capabilities to compete in large transformation programs, competition for large deals is intensifying and gradually redistributing market share within the industry.

Emerging Opportunities: The nature of technology spending is evolving, allowing specialized mid-sized firms to compete more effectively for large transformation programs, particularly in areas such as AI, cloud modernisation, data engineering, and platform transformation.