India's largest IT services companies, TCS and Infosys, which recently reported FY2020 Q1 results, continue to stress on the banking and financial services (BFSI) vertical. Both companies have witnessed flat growth for close to four quarters in the segment, which contributes a third of their revenues. TCS reported segment revenue share of 30.8 per cent this quarter compared to 30.9 per cent in the last quarter.
For Infosys, this was 31.4 per cent this quarter compared to 31.6 per cent in the last quarter. The management of both the companies agreed that the softness in capital markets in the US and Europe was the main reason for this. However, both seem to be optimistic, as TCS signed $2 billion BFSI contracts last quarter, while Infosys is looking to grab opportunities in cards & payments, corporate banking, digital transformation and modernisation of legacy systems.