‘Fastest five’ service providers reinforcing capabilities amid uncertain times

HFS has identified the ‘fastest five’ service providers that reported the highest revenue growth⁽¹⁾ rates in Q3 2024. They are Coforge, Firstsource, Persistent, EXL, and Sonata Software. Exhibit 1 shows they all achieved double-digit revenue growth across the board, far exceeding the 5.6% YoY market average⁽²⁾ growth rate.

For enterprises looking beyond the TWILTCH providers covered here (TCS, Wipro, Infosys, LTIMindtree, Tech Mahindra, Cognizant, and HCLTech), the ‘fastest five’ present an interesting opportunity to partner with a growing provider that offers a unique blend of scale, agility, and flexibility. It’s important to note that inorganic growth can catapult a provider to this list.

Exhibit 1: Year-over-year ‘fastest five’ revenue growth in Q3 2024

Source: HFS Research and earnings reports of leading service providers, 2025
Note: Revenue and growth data represents HFS estimates based on analysis of publicly available information. Year-on-year (YoY) growth compares a quarter with the corresponding quarter of the previous year.

‘Fastest five’ service providers doubling down on growth verticals and emerging technologies

The ‘fastest five’ service providers continue to invest in building capabilities to serve in-demand industry verticals and emerging technologies. In particular, we see notable investments in AI, cloud, and data capabilities alongside significant efforts to strengthen domain proficiency with tuck-in acquisitions and workforce upskilling programs. This combination of domain knowledge and technological expertise puts the ‘fastest five’ in a strong position to better serve enterprises as they blend technology solutions with industry context to provide maximum value and improved outcomes.

It is also notable that amid an industrywide slowdown, the ‘fastest five’ have thrived because of their ability to navigate delays in executive decisions and address macroeconomic uncertainty, FX volatility, restructuring, and sector-specific challenges with resilience and agility—alongside a healthy boost of inorganic growth from a handful of strategic acquisitions.

Delving into the earnings of each ‘fastest five’ company

• Coforge reported 32.8% YoY revenue growth in Q3 2024—the highest of any provider we track. The increase was driven by the acquisition of Cigniti, which contributed ~19% of additional revenue in Q3, 4,400 employees, an improved presence in the western US, and a notable boost in three verticals—retail, high-tech, and healthcare. Additionally, revenue grew significantly across Coforge’s three focus domains—banking and financial services (BFS), insurance, and transport—and all geographies.
• Firstsource reported 23.7% YoY revenue growth in Q3 2024, driven by BFS, healthcare, communications, media, tech, and other diverse industries. The company also reported inorganic growth from acquiring Ascensos, a CX outsourcing partner for retail and e-commerce businesses projected to contribute 5% revenue growth, and QBSS (Quintessence Business Solutions & Services), a healthcare-focused company.
• Persistent reported 18.4% YoY revenue growth, driven by its BFSI and healthcare and life sciences businesses in North America. Management also attributed a small percentage (~1%) of revenue to its recent acquisition of Starfish Associates. Persistent expects the acquisition will strengthen its capabilities in AI-powered contact centers and unified communications, driving further growth in future quarters.
• EXL reported 14.9% YoY revenue growth in Q3 2024. This growth was balanced across its key verticals—insurance, healthcare, emerging business, and analytics. Additionally, EXL’s acquisition of ITI Data bolstered its data engineering capabilities and contributed an estimated $7-$9 million in revenue in Q3 2024 and added 500+ employees to its workforce.
• Sonata Software reported 13.4% YoY revenue growth. Large multi-year deal wins in healthcare and financial services contributed to its Q3 2024 growth. Leadership advised that Sonata’s focus on large deal closures, high-growth verticals—BFSI, retail, manufacturing, and technology, media, and telecommunications (TMT)—AI-driven innovation, strategic partnerships, and strong performance in North America were responsible for its continued growth despite macroeconomic headwinds.

The Bottom Line: The ‘fastest five’ blend domain knowledge and technological prowess with the nimbleness of mid-tier agility, establishing themselves as a compelling choice in a fiercely competitive market.

Enterprises seeking business value beyond productivity gains, cost savings, and point solutions from their AI investments must rethink processes and prioritize industry-specific solutions. The ‘fastest five’ service providers, with their mid-tier flexibility and focused expertise across select domains and geographies, present a strong choice for enterprises. However, enterprises must ensure they are aligned with their providers’ priorities to unlock full potential value.

Notes: (1) Growth data represents HFS estimates based on analysis of publicly available information. The year-on-year (YoY) growth compares a quarter with the corresponding quarter of the previous year. (2) HFS considered Accenture, Birlasoft, Capgemini, Coforge, Cognizant, Conduent, DXC, EPAM, EXL, Firstsource, Genpact, Globant, HCLTech, IBM, Infosys, Kyndryl, LTIMindtree, Mphasis, Persistent, Sonata Software, TCS, Tech Mahindra, Wipro, WNS, and Zensar for this analysis. (3) HFS definition of mid-tier companies: Revenue between $500 million and $2 billion.