New Delhi, Dec. 8 -- Health-tech providers have emerged as the only bright spot in India's $283-billion IT sector, with companies such as Sagility, Inventurus Knowledge Solutions (IKS) and Indegene recording steady growth despite a sluggish demand environment.

Tier-1 information technology (IT) services providers, mid-caps, engineering research and development (ER&D) firms and health-tech companies reported an average sequential growth of 1.6%, 2.7%, 2.89%, and 4.2%, respectively, during the July-September quarter.

This outperformance stems from health-tech companies adapting more effectively to US regulatory challenges, including tighter spending on medical drugs, and increasing reliance on software platforms for routine patient and ad...