New Delhi, Aug. 19 -- Midcap IT companies are all the rage. Investors love them while analysts claim they constitute a major threat to the big boys of the sector. With two of them - Sonata and Happiest Minds - breaking rank to quantify their business from AI, they are being seen as future-ready. On the basis of this evidence, these smaller firms are said to be emerging as a threat to the big boys of Indian IT.

The thing is, we have heard this before. Indeed, the dominance of TCS, Infosys, HCL Tech, Wipro and Tech Mahindra is not for lack of challengers. In the last 15 years, midcaps have threatened to break the stranglehold of the Big 5. Waves of digital transformation, from cloud adoption to advanced analytics, put wind in the sails of ...