New Delhi, Aug. 18 -- India's $283-billion information technology (IT) industry appears to be fragmenting into two distinct blocs, one prioritizing growth through large deal wins and the other pursuing profitability at a time when artificial intelligence (AI)-led automation and global uncertainty have made clients both demanding and cautious.

Two large IT services firms-HCL Technologies Ltd (HCLTech) and Wipro Ltd-and at least two smaller peers-Hexaware Technologies Ltd and Mphasis Ltd-are concentrating on growth at the cost of profitability, underscoring the large deal wins by these companies, analysts said.

Last month, HCLTech lowered its full-year operating margin target to 17-18% from its earlier stated 18-19%. Although the manageme...