The Hindu Business Line : `Top 3 Indian services cos way ahead of global peers'

The Boston Consulting Group (BCG) has predicted that one of the top Indian IT services firm was poised to become the most valuable company globally by 2012. The top three Indian IT services firms are way ahead of their global counterparts like IBM, Accenture and EDS in terms of the price to revenues ratio.

"If they could sustain their growth momentum, there is a possibility that one of them could break into the top league by becoming the most valuable firm six years from now," said Mr James Abraham, Director, BCG India, at a roundtable on "The IT Sector - Imperatives and Future Outlook".

Drawing a parallel between the growth of the Japanese auto industry and the Indian IT services industry, Mr Abraham said the Indian IT vendors are well poised to increase their global market share the way the Japanese auto companies did in the mid-70s and 80s by challenging the incumbent US companies. The Indian IT firms are also competing with incumbents, which are predominantly the US firms.

"While the challengers in the auto industry moved from cost-advantage to other bases of competition, the Indian IT services companies are increasing their service offerings and using the global delivery model in areas like consulting," he said. The biggest shift will happen when the Indian companies will move beyond the labour advantage to both intellectual property and labour, he added.

Indian threat

Mr Neeraj Aggarwal, Principal, BCG India, said that global IT majors are ramping up their India presence pretty fast.

Companies like IBM are taking the Indian threat seriously. "Today around 11 per cent of IBM global workforce is in India and they plan to add on thousands of people every year," he said.

BCG, Mr Aggarwal said, estimated that by 2020, India would have one of the largest workforce surplus of around 47 million, while countries such as the US, China and Japan would face a labour pool deficit of 17 million, 10 million and nine million, respectively.

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`Top 3 Indian services cos way ahead of global peers'