Zensar hit as Cisco pares vendors, fifth IT firm under top-client pressure

The development makes Zensar the fifth Indian information technology (IT) services company in the past year to face pressure in a top account, underscoring a broader trend of global clients rationalizing vendors and cutting costs, moves that are weighing on growth prospects for mid-tier IT outsourcers.

Peers including Hexaware Technologies Ltd, Mphasis Ltd, LTIMindtree Ltd, and Sonata Software Ltd have all lost business from their largest clients over the last year.

According to two people with knowledge of the matter, Zensar is expected to get less business from managing back-end IT work of Cisco. Mint could not independently ascertain the amount of business lost from the client and whether it will continue to lose share. Emails sent to Zensar on Sunday, and to Cisco on Monday remained unanswered till press time.

The Pune-based IT outsourcer, part of the RPG Group,…