Deal wins (TCS-Proximus, Ericsson, Alcatel-Lucent, Virgin Atlantic; INFY-BP, Archrock, RXR, Britvic; HCLT-Hitachi ABB; WPRO-Levi Strauss, Bristol Water; LTI-Hoist Finance) remained strong in 1QFY22. Acquisition volumes continued in 1Q (WPRO-Ampion; TECHM-DigitalOnUs, Eventus; LTI-Cuelogic; PSYS-Sureline Systems select assets; MTCL-NxT Digital; ZENT-M3bi) to augment capabilities in cybersecurity, DevOps, product development and analytics. We believe that the elevated supply-side pressure is transient and will normalise over the next 1-2 quarters. Strong deal momentum (both pipeline and large deal bookings), broad-based industry-vertical trends towards digital transformation, positive cyclical indicators in product development/engineering services and consulting, accelerated hiring, and improving alignment with hyperscalers/SaaS indicate continuity of momentum for the sector (coverage universe). Tier-1 IT is expected to deliver 4% QoQ (3% organic) and 20% YoY (base impact) revenue growth. In comparison, mid-tier IT is expected to post 3.5% QoQ (range of -3.6% to +5.9% QoQ) with larger mid-tier averaging >4.5% QoQ. Margin will be impacted by wage increases, increase in sub-contracting/attrition, offset partly by operating leverage and FX/offshoring.