Despite the global slowdown, top software vendors have increased their tally of ‘mega’ clients that contribute an annual revenue of over $100 million.
In the last five quarters, the top companies won 13 such new global mega clients.
Impressive performance
It was a quite an impressive performance by Wipro and HCL Technologies — both managing to get four clients each in the last one year, each providing revenue of over $100 million.
Generally, the companies do not disclose such individual mega deals. However, the only information in the public domain was TCS signing a $100-million contract in the June quarter with a North American retailer.
“A five-fold increase in $100-million clients, a 31 per cent increase in revenues and a 48 per cent rise in net income year-on-year, establish that industry-leading growth can be achieved profitably,” said Vineet Nayar, CEO and Vice-Chairman, HCL Technologies, when announcing the company’s June quarter financial results.
The June quarter Global TPI Index, which covers commercial outsourcing contracts worth $25 million or more, measured total contract value of $21.4 billion, an increase of seven per cent from both the June quarter of 2011 and the March quarter of 2012.
Driving this was the strong growth in the business process outsourcing (BPO) segment and the Asia-Pacific region.
Renewed activity
The 173 contract awards during the second quarter represented a drop of 22 per cent year-on-year and 14 per cent sequentially. However, the market saw renewed activity in mega-deals, those contracts with a total contract value of $1 billion or more, and mega-relationships, those contracts with an annual contract value of $100 million or more, says the index prepared by Information Services Group, a US-based technology insights, market intelligence and advisory services provider.