Indian Top 6 still super-growing
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TCS earned more new revenue than IBM in 2006....
Indian IT services companies continue to out-grow the worldwide market share leaders, not just proportionally but in some cases in dollar terms, according to a new report from analysts company Gartner.
Tata Consultancy Services, for example, which ranks 35th in worldwide IT services market share, grew revenues by $1.2 billion in 2006, while IBM, the world’s number one, grew its revenues by just $1 billion.
And competitors are not far behind. “Infosys has closed the gap substantially moving up 82 positions [on the world marketshare rankings] to a close follower of TCS at position rank of 43 today,” the report found.
“Buyer adoption of offshore service delivery and a willingness to consider emerging offshore service brands has had a material impact on the competitive landscape and providers’ market share performance,” explained distinguished analyst Partha Iyengar.
“Large outsourcers are now re-evaluating their preferred vendor rankings to include Indian companies, especially for multi-vendor engagements.”
“If the India-centric IT service providers continue to grow at the current pace, at least two companies will be a part of the top ten companies globally,” he added.
The worldwide IT services market as a whole grew from $554 billion in 2001 to $672 million in 2006. Indian companies now account for nearly 2% of that market, compared to half a percent in 2001.
The average revenue growth rate among India’s top six IT services companies (in order: Tata Consultancy, Infosys, Wipro, Cognizant, Satyam and HCL Technologies) was 42.4%.
The report concluded that if market share is the end goal of the Indian IT services companies, then they must begin acquiring sizeable companies now, before they themselves become acquired by the global top ten.
Further reading
Currency commotion - How rupee inflation is effecting India's IT services industry
Out of India - Who's best placed to exploit the world's biggest pool of low-cost, highly-skilled IT service labour?
