Indian IT sector sets new benchmarks with record-breaking global contracts in FY26

Indian IT companies have secured multi-billion dollar deals across healthcare, insurance, and media, signalling a strategic shift towards AI-driven innovation and infrastructure modernisation in an increasingly competitive global landscape during the first half of FY26.

The first half of Financial Year 2026 has set a new benchmark for Indian IT companies, with a spate of record-breaking, multi-year contracts that underscore the sector’s growing maturity and its pivota...

l role in enabling digital transformation across key global industries. These deals, valued in billions of dollars, primarily focus on consolidation, infrastructure modernisation, and AI-driven innovation, indicating a strategic shift in client priorities towards scalable, future-ready IT ecosystems.

Topping the list is Infosys’s landmark £1.2 billion (approximately $1.6 billion) contract with the UK’s National Health Service Business Services Authority (NHSBSA). This 15-year engagement involves replacing the NHS’s existing Electronic Staff Record system with a cutting-edge, data-driven workforce management platform covering 1.9 million employees and an annual payroll exceeding £55 billion. The platform will modernise the NHS workforce lifecycle management, encompassing recruitment, onboarding, payroll, career progression, and retirement. The deal is aligned with the NHS’s 10-year Health Plan aimed at fostering a future-ready workforce through digital innovation and AI-enabled workforce planning. According to Reuters and Business Standard, this contract represents one of the largest healthcare IT transformations globally and marks a significant win for Infosys amid a challenging international economic environment impacting IT services.

Tata Consultancy Services (TCS) has sustained its market dominance with a $640 million, seven-year extension of its partnership with Scandinavian insurer Tryg. This €550 million deal underscores TCS’s commitment to digital transformation through AI and cloud technologies, aimed at unifying IT operations across Denmark, Sweden, and Norway. TCS will focus on simplifying and standardising processes to support Tryg’s ‘United Towards 27’ vision, enhancing operational efficiency, customer experience, and speeding market responsiveness. This contract was part of TCS’s $10 billion in bookings reported for Q2 FY26, highlighting its unrivalled scale and ability to manage complex enterprise engagements across diverse sectors such as BFSI, healthcare, manufacturing, and retail. The company also announced plans to invest $6-7 billion over the next six to seven years to develop 1GW of AI data centres, reflecting its aggressive push into AI infrastructure.

Wipro marked a notable surge with a £500 million (about $665 million) strategic deal with the UK’s Phoenix Group, the largest long-term savings and retirement business. The 10-year contract focuses on operational transformation and accelerating digital adoption within insurance services, specifically for Phoenix’s ReAssure business. Wipro also recorded a 90.5% year-on-year increase in large deal bookings, reaching $4.7 billion in total for the quarter, driven by its newly launched Wipro Intelligence suite which integrates AI-powered platforms at the core of its growth strategy.

Mid-cap disruptor LTIMindtree secured its biggest-ever deal worth $580 million with a global media and entertainment company, focusing on operational streamlining, delivery model modernisation, vendor consolidation, and automation. This deal highlights LTIMindtree’s emerging capability to rival top-tier firms in striking sophisticated multi-year contracts, showcasing the competitive dynamics within the Indian IT sector.

HCLTech continued to expand its footprint with a multi-year renewal and expansion deal with a leading Swedish commercial vehicle manufacturer, centring on IT infrastructure modernisation. The deal leverages HCLTech’s AI Force, its generative AI-led platform, signalling the company’s strategic focus on AI as a differentiation point. Despite the absence of mega-deals this quarter, HCLTech reported new contract bookings exceeding $2.6 billion, supported by nine exclusive AI and generative AI wins in Q2 FY26, with its advanced AI revenue crossing the $100 million mark for the first time.

Tech Mahindra contributed to the robust deal-making environment with $816 million in bookings, a 35% year-on-year rise. Its contracts spanned specialised areas including AI, digital engineering, and cybersecurity across verticals such as communications, manufacturing, retail, transport, and logistics. CEO Mohit Joshi highlighted the broad-based nature of growth and consistent margin improvements over eight consecutive quarters, aligning with the company’s FY27 strategic ambitions.

These landmark agreements come against a complex global backdrop marked by economic uncertainty, geopolitical pressures, and shifts in regulatory frameworks affecting immigration and trade. Yet, Indian IT firms continue to demonstrate resilience, leveraging their strengths in AI, cloud computing, and digital transformation to secure long-duration contracts that promise stable, recurring revenue streams. The focus on AI is particularly notable, with major firms investing heavily in AI infrastructure, platform development, and specialised services—signalling the next frontier of competitive advantage.

Overall, the first half of FY26 reflects a seismic shift in Indian IT’s global positioning—from traditional service providers to strategic partners in digital innovation and infrastructure modernisation. As these firms deepen engagements with global industry leaders in healthcare, insurance, media, manufacturing, and more, they are setting the stage for sustained growth buoyed by technological advancements and market consolidation.

Source: Noah Wire Services