As part of its effort to reduce its excessive reliance on the US market amid ongoing financial uncertainty affecting the global IT services sector, Persistent Systems is looking to expand its operations in Europe.
Currently, over 80% of Persistent’s income comes from the US. In comparison, only 8.5% came from Europe in the quarter that concluded on December 31. To achieve greater global diversification, the company’s long-term goal, according to Chief Executive Officer and Executive Director Sandeep Kalra, is to increase Europe’s sales contribution to 12–15%.
Persistent intends to modify its acquisition strategy to support this push. Kalra stated that the company would consider larger-scale acquisitions in Europe to gain access to clients, an area where the company currently lacks depth, even though it has historically focused on modest tuck-in acquisitions to build skills.
The change occurs as IT services firms seek beyond conventional growth drivers amid low single-digit growth and dampened demand. Persistent intends to concentrate on software-led prospects, such as application modernization, data modernization, and agentic AI, while peers are growing into sectors including data centers, cybersecurity, and physical AI.
As clients continue to reallocate expenditures from routine support work to more business-focused, transformative initiatives, Kalra noted that AI-driven projects currently account for less than 10% of Persistent’s revenue.
