Indian IT service firms grow by 19 percent: Gartner
By siliconindia   |   Friday, 13 May 2011, 23:47 IST
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Indian IT service firms grow by 19 percent: Gartner
Bangalore: Indian IT service companies are growing in a high rate. The research firm Gartner reports that top ten Indian IT providers grew by 19.9 percent while the IT service revenue of top ten firms grew by 5.8 percent. The top five IT service firms include TCS, Infosys, Wipro, Cognizant and HCL. The software services industries worldwide revenue grew by 3.1 percent.
TCS gained three ranks to move up to 21st position in the global IT services ranking of service providers among the top five India-based providers, it was ranked 24 in 2009. It could maintain its leadership qualities and continuing its growth. The company continuously strategies its IT services with investments in expanding applications, infrastructure and business process outsourcing (BPO) portfolio. N Chandrasekaran, chief executive of Tata Consultancy Services said in an interview after their Q4 result, 2011 that their nimble organization structure, together with their full-services strategy and domain-intensive solutions gives them a great platform to sustain growth. Cognizant reported the strongest revenue growth in 2010 with 40 percent dollar growth. However Mahindra Satyam reported a decline in revenues that is 10.2 percent in 2010. It ranked 34 in 2010. Commenting on Infosys growth, Gartner reported that the company faced headwinds of a hypercompetitive market and aggressive selling tactics of its competition, which challenged its historic positioning of higher-value services, this coupled with Infosys' stand of not compromising with its profitability, resulted in losing some business to its more aggressive Indian competitors. The company ranked 28 globally and it is the India's second largest firm with $5.33 billion revenues. Wipro experienced a 16.4 percent growth, and in its most recent quarter results came in below expectations. It is the third largest firm in India and Wipro ranked 31 in the in the world. Gartner said Wipro has a solid integrated service portfolio approach; global delivery optimization; greater standardization and reuse and a new focus on expanding system integration services. HCL reported 26.7 percent growth in 2010 and it ranked 48 in the world. Arup Roy, principal research analyst at Gartner, said , "Global IT service companies have a larger base and hence it is irrational to expect their growth rates to be similar to those reported by Indian IT service firms which are comparatively smaller in size. Moreover, Indian players have a great deal of mindshare among global clients who are looking at offshoring in a big way." He also added that recognizing the importance of diversification; Indian providers are expanding their geographic reach, as well as expanding their service line mix, while maintaining a focus on sustaining operating margins.

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