Indian IT gears up as contracts of $113 bn up for renewal.

Indian companies might end up with a smaller slice as more information technology contracts get restructured, warn analysts.

Recently, Bharti Airtel restructured a $2-billion deal and infotech companies TCS, Wipro and Tech Mahindra gained. But this may not be the norm.

According to data from ISG, a company that tracks outsourcing, $112.95 billion of infotech contracts are due for renewal in 2014. The share of Indian vendors in this is 16 per cent, a business opportunity of about $18 billion. Over the next three years, India’s share in the renewal market will range between 16 and 18 per cent, ISG says.

Analysts point out Indian companies need to be cautious because they are the big players in several contracts coming up for renewal. Break-down deals that divide work among vendors have become a trend in the sector.

BS