Indian IT majors outsmart global peers
Date: Friday , September 01, 2006
It couldn’t have got better than this. A study by Forrester shows that Indian IT companies like Infosys, TCS and Wipro have outsmarted global contemporaries like IBM and Accenture on the revenue and profit growth parameters.
Analyzing the performance of global and Indian IT companies, Forrester said the Indian IT companies are thriving while global companies are continuing to lose market share.
Forrester Research Vice President Stephanie Moore said that MNC IT companies are losing to Indian firms especially in the application services market. While most legacy service providers worldwide have posted minimal to negative growth, Indian companies have reported robust revenue and profit growth.
Forrester says global majors are struggling to compete in the more efficient and transparent world of IT service provisioning created by the Indian vendors.
Moore said the revenue and profit growth figures of Indian companies are shaming most of the global majors that are still struggling to compete in the more efficient and transparent world of IT service provisions created by the Indian vendors.
Forrester says as Indian companies are investing in moving up the chain, they will maintain their lead for some more years while global majors will be distracted by their legacy delivery engines.
TCS recently reported revenue growth of 42 percent and net income growth of 33 percent for the June quarter, while Infosys reported revenue growth of 39 percent and profit growth of 43 percent, which were ahead of the market expectations. Wipro’s revenue rose 37 percent while earnings were up by 44 percent in the same quarter.
In contrast, global majors have reported relatively disappointing results. IBM’s services revenue in the June quarter was down by one percent, although its profitability across all business lines rose by nine percent while Accenture reported revenue growth of 11 percent and net income growth of 7.8 percent for its last quarter.
Moore says Indian vendors are changing the way services are delivered and the way clients interact with their service providers.