Archive · 27 Jan 2026
Cisco Reduces Business with Zensar Amid Vendor Rationalization
Zensar Technologies, an Indian IT company, is getting less business from Cisco, one of its top clients.
Cisco is reducing the number of IT vendors it works with and cutting costs.
This is part of a bigger trend where global companies are choosing fewer vendors to save money.
Other Indian IT companies like Hexaware, Mphasis, LTIMindtree, and Sonata Software have also lost business from their largest clients.
Zensar's revenue from Cisco has been decreasing, which could slow down its goal to reach $1 billion in revenue.
The company is now looking to grow in areas beyond its current focus on telecom, media, and technology (TMT) sectors.
Cisco is reducing business with Zensar Technologies as part of vendor rationalization and cost-cutting measures.
Zensar is the fifth Indian IT firm in the past year to face pressure from a top client.
Zensar's revenue from Cisco is about $40 million annually, roughly 6% of its total business.
Zensar's revenue declined by 1.4% sequentially in Q3FY26, with significant weakness in the TMT sector.
Zensar's management is focusing on growth beyond the TMT sector to achieve its $1 billion revenue goal.
- Who
- Zensar Technologies Ltd and Cisco Systems
- What
- Cisco is reducing business with Zensar as part of vendor rationalization
- When
- The changes are ongoing, with impacts seen in recent quarters
- Where
- Global, with significant operations in India and the US
- Why
- Cisco is tightening discretionary spending and reducing the number of IT vendors it works with
- Company
- Zensar Technologies Ltd
- Client
- Cisco Systems
- Revenue from Cisco
- $40 million annually
- Zensar's Total Revenue (Q3FY26)
- $160.5 million
- Zensar's Annual Revenue (FY25)
- $624.5 million
- Cisco's Annual Revenue (FY25)
- $56.7 billion
- Zensar's Revenue Goal
- $1 billion
- TMT Sector Revenue Decline
- 8.7% q-o-q