Indian IT growth outpaces global biggies
Date: Thursday , November 01, 2007
Today the Indian firms seem to be growing very fast. At least two India-centric service providers are expected to figure among the global top-10 by 2010, according to a study by global research and analysis firm Gartner.
The report states that Indian IT companies are yet to measure up to global IT giants. In 2006, the total market share of the top-10 global firms (which include IBM, EDS, and Accenture) was 26 percent.
In 2006, about 1.9 percent of the total $672 billion IT services market was marked by the top six Indian-centric IT services providers – Satyam, Wipro, Infosys, TCS, Cognizant and HCL Technologies, nicknamed SWITCH. However, in 2001, they accounted for a mere 0.5 percent of the $554 billion IT services market. The average annual growth rate of the SWITCH companies was 42.4 percent in 2006 compared with the 4.3 percent growth of the market leaders during the same period, according to newspaper sources.
According to Partha Iyengar, Vice-President, Analyst and Regional Research Director, Gartner, from being relatively unknown brands a decade ago, leading India-centric providers now offer formidable competition to the global players. Large outsourcers are now re-evaluating their preferred vendor rankings to include Indian companies, especially for multi-vendor engagements.
Despite IBM’s $48 billion IT service revenues, its dollar growth year on year was less than $1 billion. On the other hand, TCS increased its revenues by over $1.2 billion in 2006 and achieved this increase from a revenue base that was 1/18th of IBM’s revenue base.