The Hindu Business Line : India-based IT vendors revenue up 33.3% in 2006

Mumbai May 17 India-based vendors' IT services revenue grew 33.3 per cent in 2006, but constituted only 3 per cent of the tracked revenues, said a research report from Gartner Inc.

This is much higher than the growth rate of 6.4 per cent for world IT services revenues. However, India-based vendor companies earned only 3 per cent of the revenue tracked by Gartner, while US-based vendors earned 57 per cent of the total.

"Without significant acquisitions, it would take India-based vendors many years to reach even half the revenue of US-based vendors," said Ms Kathryn Hale, Research Vice-President for Gartner's worldwide IT services group.

Worldwide, IT services revenues amounted to $672.3 billion in 2006, against $631.8 billion in 2005.

"Core business process outsourcing (BPO) services had a strong showing in 2006," said Ms Hale.

"These process management services grew 8.6 per cent worldwide, and several market leaders grew faster than the overall market. Still, development and integration services represent the backbone of IT services, accounting for 30 per cent of the market in 2006."

Growth rates

Across all IT services, IBM continued to be the worldwide market leader although its growth rate was below the industry average, said Gartner. IBM's revenues from IT services grew 1.8 per cent, but its market share dipped to 7.2 per cent, from 7.5 per cent a year ago.

EDS and Accenture were the only vendors in the top six that experienced revenue growth rates above the overall market average, clocking growth rates of 7.6 per cent and 7.8 per cent respectively. Their market share increased by 0.1 percentage point each, to 3.2 per cent, and 2.6 per cent, respectively.

Market share for 13 of the top 20 vendors dropped in 2006.

Top vendors

The top six vendors were IBM, EDS, Fujitsu, Accenture, HP and CSC, in that order.

The market share under the category of "others" was 79.8 per cent, up from 79.1 per cent.

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