Indian IT Wants to Break From Its US Addiction. But It's Harder Than It Looks

On April 9, the same day TCS announced it had renewed its decade-long partnership with Marks & Spencer as the British retailer's principal technology partner, the company also disclosed its full-year results: $30 billion in revenue, a record $40.7 billion in total contract value, and three consecutive quarters of sequential growth. CEO K Krithivasan called the momentum "broad-based across major markets."

However, for all the deal volume, the United States still accounted for the bulk of revenues. Across the Indian IT sector, America represents more than 60% of export revenues, a share that has remained stable for a decade, even as firms have spent the past several months announcing their push into Europe, the Middle East, and Asia-Pacific.

That concentration has become the industry's defining strategic anxiety. With US enterprise clients growing more cautious, H-1B visa friction mounting, and policy unpredictability adding a layer of operational risk, Indian IT firms have been increasingly expanding their investments away from the US in hopes of diversifying their revenue streams.

Earlier this month, Hexaware announced a £25 million investment to expand its operations in the UK, pledging 1,200 jobs across Manchester, Leeds, and Birmingham. TCS opened a delivery centre in Toulouse, France, last year. Infosys expanded into Sweden. A string of Gulf contract wins and Japan partnerships have followed.

“Indian IT has been structurally over-indexed on the US, which today carries a compounding set of uncertainties: protectionist policy signals, visa friction, H-1B volatility, and a client base that's become more cautious on discretionary tech spend. When one market represents over 50% of revenues for most large Indian IT players, that's a concentration risk,” Praveen Bhadada, CEO and Managing Director of consulting firm Neovay Global, tells AIM.

In its recent earnings, Jayesh Sanghrajka, Chief Financial Officer of Infosys, said in FY26, the Europe geography, along with communications and manufacturing verticals, grew more than double the company average. This was led by a ramp up of large deal wins.

The Deals Story

Europe is generating Indian IT's most visible diversification headlines. In September 2025, TCS signed a seven-year, €550 million ($645 million) AI-led transformation deal with Scandinavian insurer Tryg. In addition to the Marks & Spencer deal, TCS also expanded its partnership with Primark into a five-year transformation programme.

Wipro has won multi-year infrastructure modernisation mandates with major European financial institutions like Phoenix Group and Close Brothers, and continues to work with Germany's E.ON, while HCLTech maintains contracts with UK insurer Chesnara. 

TCS also renewed its partnership with Norway's DNB Bank and secured a digital transformation engagement with Coop Danmark. Beyond deals, TCS launched SovereignSecure Cloud as well in Europe as an indigenous cloud platform designed for governments, public sector enterprises, and highly regulated industries.

“The EU's push on data sovereignty, AI governance, and digital infrastructure investment creates a sustained demand environment. The firms that treat Europe as a strategic priority will be well-positioned. Those who treat it as overflow capacity for the US slowdown will find it a difficult market,” says Bhadada.

When it comes to the Asia-Pacific, TCS and the Australian Securities Exchange went live with CHESS Release 1 in April this year, a major overhaul of Australia's clearing and settlement infrastructure.

Earlier, Australia's Flight Centre Travel Group selected TCS to transform its enterprise technology services. 

Japan has emerged as another priority market, with TCS investing in local delivery capabilities and executive engagement as the country's enterprises accelerate digital transformation, and the Gulf's appeal lies in sovereign-backed digital transformation programmes under initiatives such as Saudi Vision 2030 and the UAE's digital agenda. 

The Wall

While the diversification is accelerating, the structural weight of US dependence is far harder to shift, according to industry analysts.

"Europe as a market will never replace the US because the size of it is over 60% of the $1.7 trillion industry. Also, the major buyers and major spenders are in the US, followed by Europe, which is a very fragmented market,” says Gaurav Vasu, Founder of research firm UnearthInsights.

He adds that the US market has grown significantly and has become mature, and at this scale, companies cannot expect the market to grow at double digits consistently.

“That's why all the companies, especially those that are big, will also have multi-country approaches. They will have multi-country, multi-geography, multi-sector, multi-vertical approaches,” Vasu notes.

The Revenue Mix 

Across the four companies that collectively set the tone for the sector—TCS, Infosys, Wipro, HCLTech—the revenue geography in FY26 tells a consistent story of incremental shift rather than structural transformation.

Wipro's Q4 FY26 revenue breakdown shows Americas 1 (North America) at 33.2%, Americas 2 (Latin America) at 28.1%, Europe at 27.2%, and APMEA at 11.5%. 

Infosys has made one of the most visible European progresses, with Europe at 32.1% of revenues. TCS said its growth in the last quarter was led by the UK, with the market growing 2.4% sequentially, followed by North America at 1.4% growth rate.

For now, Indian IT is doing what it has always done well: following the client, building the relationship, and letting the contract pipeline tell the real story. Whether the geography of those contracts looks materially different in five years' time will be the actual measure of whether this diversification push is structural or seasonal.