Top 5 Indian providers grew 13.3% to beat global ITeS growth rate: Gartner
New Delhi, India, May 28, 2013: The top five Indian providers grew 13.3 percent in 2012, exceeding the IT services industry growth of 2 percent according to Gartner, Inc. The growth decelerated for both industry groups, from 21.8 percent and 7.7 percent, in 2011.
Arup Roy, research director at Gartner, said, “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 an increase of 20.1 percent in 2012. 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.”
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 the 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 (those 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. There is a strong focus on, and investments in, cloud, analytics, mobility, infrastructure and knowledge processes. India-based providers have become much more aggressive in infrastructure management because it offers them the potential to grow bottom-up within accounts”, added Roy.
Revenue contribution from project-based and staff augmentation deals has continued to decline for the top five Indian-based providers, and the outsourcing service line component has steadily increased. They have also made significant strides in developing industry-specific BPO services through acquisitions and/or organic growth. There is an increasing focus on “integrated services play.”
Indian providers use an integrated approach of applications, infrastructure and BPO, thereby allowing them to get a better handle on their clients’ IT-business process leveraging, through which they can deliver greater cost savings and drive business value. This allows them to expand their margins as well. All these providers also have a strong focus on infrastructure services, particularly remote infrastructure management services, which account for 65 percent to 70 percent of their infrastructure services revenue.
© Mouseworld Now News Service