Mphasis , a leading IT services and solutions provider, is experiencing a significant uptick in large transformational deals as enterprise customers move beyond AI experimentation to scaling initiatives, according to CEO Nitin Rakesh.

Billion-Dollar Deal Momentum

Rakesh revealed that Mphasis has closed nearly a billion dollars in Total Contract Value (TCV) deals over the past two quarters, indicating a substantially higher run rate compared to previous periods. This surge in deal value underscores the growing demand for AI-driven solutions and services in the enterprise sector.

AI Adoption Trends

The CEO highlighted two distinct trends in enterprise AI adoption:

1. Clients with existing AI infrastructure are now seeking to scale their initiatives.
2. Companies without established AI capabilities are looking for partners to build these capabilities from the ground up.

This diversification in client needs presents Mphasis with opportunities to offer a wide range of services, from scaling existing AI solutions to developing new AI infrastructures for clients.

Improving Economic Outlook

Rakesh noted a positive shift in the economic landscape, stating that recession fears that have affected the industry for the past three years are now receding. He suggested that potential interest rate cuts could create a softer economic environment, potentially benefiting macro-dependent business segments.

Shifting Industry Paradigm

A foundational shift is occurring in the IT industry, according to Rakesh. The traditional linear correlation between revenue and headcount growth is evolving:

• Historical model: 1:1 ratio between revenue and headcount growth
• Emerging trend: This ratio could drop to 0.70 or 0.60

This shift reflects a pivot from people-based efforts to bundled technology solutions, indicating a more efficient and technology-driven approach to service delivery.

Implications for Mphasis and the IT Sector

The accelerated adoption of AI in enterprises, coupled with the changing industry dynamics, positions Mphasis favorably in the market. The company's ability to secure large deals and adapt to the evolving landscape suggests a strong potential for growth and innovation in the coming quarters.

As enterprises continue to invest in AI and digital transformation, companies like Mphasis that can offer scalable, technology-driven solutions are likely to see increased demand for their services. The shift away from a headcount-based growth model also indicates a potential for improved profit margins and operational efficiency in the IT services sector.

The IT industry is at a pivotal point, with AI adoption and changing economic conditions reshaping the business landscape. Mphasis's recent success in securing large deals and its strategic focus on AI capabilities demonstrate the company's readiness to capitalize on these industry trends.

Mphasis , a leading Information Technology solutions provider, has announced a significant milestone in its partnership with Flagstar Bank. The collaboration focuses on modernizing Flagstar's data center infrastructure, marking a crucial step in the bank's 18-month transformation journey to become a top U.S. regional bank.

Key Objectives of the Partnership

The strategic alliance between Mphasis and Flagstar Bank aims to achieve four primary goals:

1. Enhancing Customer-Centric Culture: Improving performance, scalability, and security to ensure faster, more reliable, and responsive services.
2. Supporting Ongoing Transformation: Streamlining service delivery and enhancing Flagstar's technology capabilities.
3. Realizing Cost Efficiencies: Leveraging modern data center capabilities to support strategic business growth while retiring legacy infrastructure.
4. Strengthening Risk Management: Driving innovation to boost Flagstar's resilience and uphold high standards of data protection.

Technological Advancements

The modernization effort involves building a secure, agile, and scalable technology infrastructure with a modular, scalable design. This approach enables faster innovation and better response to customer and market needs, positioning Flagstar for a hybrid cloud future.

Executive Insights

Christopher P. Higgins, Chief Information and Operations Officer at Flagstar, emphasized the strategic importance of this partnership, stating, "This is a strategic investment in operational resilience, enhanced security, and scalable efficiency. It builds on our foundation of innovation to continually deliver secure, seamless, and forward-looking banking experiences."

Jason Pope, Chief Technology Officer at Flagstar Bank, highlighted the flexibility and innovation potential of the new infrastructure, saying, "The modular, scalable design gives our teams the flexibility to innovate faster and respond more effectively to evolving customer and market needs."

Rohit Jayachandran, Head of Banking & Financial Services at Mphasis, underscored the broader implications of this collaboration, noting, "This program sets a benchmark in banking infrastructure, and we are proud to partner with Flagstar for this next phase of growth."

About Flagstar Financial, Inc.

Flagstar Financial, Inc., the parent company of Flagstar Bank, N.A., is headquartered in Hicksville, New York. As of June 30, 2025, the company reported:

Flagstar Bank, N.A. operates approximately 360 locations across nine states, with a strong presence in the greater New York/New Jersey metropolitan region, the upper Midwest, Florida, and the West Coast.

This partnership between Mphasis and Flagstar Bank represents a significant step in the banking sector's ongoing digital transformation, setting new standards for technological innovation and operational excellence in the industry.