Indian IT Firms Bag International Government Contracts

By SiliconIndia   |   Tuesday, 31 March 2015, 13:23 Hrs
cmt right
Comment Right
cmt right
cmt right
Printer Print Email Email

BANGALORE: Indian IT giants like Tata Consultancy Services and Cognizant are trying to expand their horizons as laws favor new business.

The companies are trying to get contracts within public sector in countries such as U.S. and U.K. The new laws are good for businesses and they open up new opportunities that were not explored before, reports Economic Times

According to Gartner, the government is spending close to $500 billion worldwide on IT, that being that the two countries are among the biggest spender.  This is normally ignored by Indian firms as it leads to political compilation of outsourcing work home.  The public sectors are drawing more attention on itself due to overcrowded traditional avenues and enterprises creating local capabilities. Although Cognizant is a small base, it is generating strong growth in the space. It is India's second-largest offshore IT firm by revenue.
"We incubated the public sector practice in Horizon 3 a few years ago. We've had tremendous growth in the public sector, it is one of our fastest growing industry verticals," said Cognizant chief executive Francisco D'Souza. The l Horizon 3 businesses, which was regarded for having potential, generally offers a  meager contribution to the revenue with a low single digits in percentage points

"With the rest of the service market becoming saturated with offshore solutions and the Indian firms increasingly finding it hard to grow at their historical growth rates, several firms including Cognizant and Tata Consultancy Services are investing to try and penetrate these markets," said Peter Bendor-Samuel, chief executive of advisory firm Everest. 

READ MORE: 5 Tips To Prevent Your Business From Controlling Your Life
Avoid Risk! Start Business in These 7 New Industries

Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..