IBM led the market share ranking followed by EDS, Fujitsu, Accenture and HP.
TCS ranked 35 with a market hare of 0.6 per cent, while Infosys ranked 43 followed by Wipro at 49.
Analyst sees at least two companies will be a part of the top ten companies globally by 2010, if maintains growth.
Bangalore Sept. 26 Technology research firm Gartner Inc said the top six Indian IT services firm, collectively referred to as SWITCH companies (TCS, Infosys, Wipro, Cognizant, Satyam and HCL Technologies), accounted for 1.9 per cent of the total $672 billion IT services market in 2006, compared with 0.5 per cent of the $554 billion mart in 2001.
“India-centric providers have perfected their respective value propositions through global delivery models, providing high-quality yet lower-cost labour to buyers globally. These companies are making inroads in key clients, often beginning with smaller, project-based or staff augmentation work,” said Ms Allie Young, Vice-President and Analyst, Gartner.
Challenge to leaders
Despite their relatively smaller size, the SWITCH companies are making significant strides to challenge the market leaders’ positions by continuing to show strong annual revenue growth far exceeding the market norm. The average annual growth rate of the SWITCH companies was 42.4 per cent in 2006, compared with a 4.3 per cent growth of the market leader during the same period.
Big Blue IBM led the market share ranking accounting for 7.2 per cent of the $672 billion market in 2006, followed by EDS with 3.2 per cent, Fujitsu 2.7 per cent, Accenture 2.6 per cent and HP 2.4 per cent. TCS ranked 35 with a markets hare of 0.6 per cent, while Infosys ranked 43 with a share of 0.4 per cent followed by Wipro at 49 with 0.3 per cent.
“Leading India-centric providers now offer formidable competition to the global players. 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,” said Mr Partha Iyengar, Vice-President and Regional Research Director, Gartner.
“Large outsourcers are now re-evaluating their preferred vendor rankings to include Indian companies. If the Indian IT service providers continue to grow at the current pace, at least two companies will be a part of the top ten companies globally by 2010,” he said.
Dollar growth of IBM
Analysing for example, the revenue growth of the leading global and Indian provider in 2006, it can be seen that despite IBM’s $48 billion total IT service revenue, its dollar growth year over year was less than $1 billion.
TCS, on the other hand, increased its revenues by over $1.2 billion in 2006, and achieved this increase from a revenue base 1/18th of IBM’s size.