Top five Indian IT service providers grew 13% in 2012: Gartner

Our Bureau Mumbai | Updated on May 28, 2013 Published on May 28, 2013


India’s top five IT service providers posted a 13.3 per cent growth to reach $34.3 billion, exceeding industry growth of 2 per cent in 2012.

However, the growth for both IT service providers and the industry fell from 21.8 per cent and 7.7 per cent, respectively in 2011, according to a study by research and analyst firm Gartner Inc.

Indian players, according to Gartner, are providers with a predominantly India-based delivery model and management that is largely India-based. Most are headquartered in India, even though there are exceptions such as Genpact, Cognizant, Syntel and iGate, which are headquartered in the US.

“Cognizant displaced Infosys to become the second-largest Indian IT services provider, and Cognizant experienced the highest growth rate among the top five providers with 20.1 per cent in 2012,” said Arup Roy, research director at Gartner.

TCS closed in on the top 10 worldwide market share leader, with less than $1.5 billion separating it from the 10th ranked provider, Hitachi, it said.

The growth rate of India-based providers has been slowing for some years, but in 2012 this trend was more pronounced. This growth rate is still quite high compared with IT services worldwide, or the growth of the top 10 global IT services providers.

The global top 10 providers are larger in their base revenue and more diversified than the India-based providers.

“The top five Indian service providers have continuously chipped away market share from the large multinational corporation providers. In the past five years, they have been winning large outsourcing deals (with a total contract value of more than $100 million). Their target customer segment still remains the Fortune 1000 companies. Most of these firms have a large-deal pursuit sales team that goes after deals of more than $35 million in contract value,” added Roy.

The revenue contribution from project-based and staff augmentation deals has continued to decline for the top five and the outsourcing service line component has steadily increased.

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Published on May 28, 2013
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