The Hindu Business Line : Global IT services: Top 6 Indian cos’ market share rises to 2.4%

Strong growth
On the global front, IBM and Accenture delivered strong growth rates
The Indian domestic IT services market has been outpacing the overall Asia Pacific growth

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Mumbai, May 14 In spite of a credit crunch and slowdown in the US, both Indian and global IT services companies have seen strong business growth in 2007.

Worldwide IT services revenue totalled $748 billion in 2007, 10.5 per cent higher than $677 billion reported in 2006, according to research from Gartner Inc.

In the same period, the top six Indian IT companies – TCS, Infosys, Wipro, Satyam, HCL and Cognizant – increased their collective market share in the global IT service arena to 2.4 per cent against 1.9 per cent in the previous fiscal, according to Mr Arup Roy, senior research analyst, Gartner.

This strong global growth, combined with robust first-quarter results for market leaders, runs counter to the gloomy and widespread economic concerns arising in the US, said Ms Kathryn Hale, research vice president for Gartner’s worldwide IT services group.

“Many providers are successfully selling ‘buyer value propositions’ that external spending on IT services and solutions can help customers save money and be more productive, even in a profoundly uncertain economic climate,” she said.

Even though Indian IT companies have collectively improved their revenues in 2007, they are still laggards when compared with US-based vendors, who dominated the IT services pie with 55.4 per cent market share.

Indian IT companies account only for 4.1 per cent of the global IT services revenue tracked, according to a research from Gartner Inc.

On the global front, IBM and Accenture delivered strong growth rates of 12.2 per cent and 19.7 per cent, respectively. Interestingly, not even a single Indian IT company figures in Gartner’s list of top six IT vendors.

However, domestic IT services business in the country also seems to have come of age. The Indian domestic IT services market has been outpacing the overall Asia Pacific growth, as it grew by 18 per cent in 2007. “While cost remains a key consideration for users in the outsourcing services market in India, operational efficiency and business agility are driving most of the IT services engagements,” said Mr Roy.