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IT services firms are witnessing a steady decline in their traditional or legacy business, while the digital services segment, which is on a growth trajectory, is yet to reach a scale to compensate for the fall.
In the June quarter of FY19, the top four IT services companies — Tata Consultancy Services (TCS), Infosys, Wipro and HCL Technologies — saw a dip in their legacy business despite reporting faster growth in the digital segment.
IT giants derive more than 70 per cent of their revenues from the legacy business by offering application development, maintenance and testing services to global clients.
