Tier-II IT services companies might outpace their larger peers in growth, but they don't enjoy some of the benefits that accrue from size.
Over the past year or so, tier-II IT services companies such as L&T Infotech, Mindtree and Mphasis have grown faster as a group than the top five—Tata Consultancy Services, Infosys, Wipro, HCL Technologies and Tech Mahindra. This has reduced the revenue gap between the two groups. However, beyond this, the tier-II group does not have much to cheer about. Industry growth is slowing and, given the current macroeconomic factors, could slack off further.