Indian Companies increase share in IT services
IT majors, TCS, Infosys, Wipro, Cognizant, Satyam and HCL Technologies have accounted for 1.9 percent of the total $672 billion IT services market in 2006. This indicates an increase from 0.5 percent of the $554 billion IT services market in 2001, as per a study by global research and analyst firm, Gartner.
Allie Young, VP and analyst of Gartner commented that India-centric providers had perfected their respective value propositions through global delivery models (GDMs), providing high-quality yet lowercost labour to buyers globally. He said that those companies were making inroads in key clients, often beginning with smaller, project based or staff augmentation work.
These top six India-centric service providers are relatively smaller in size, but that has not stopped them in making significant strides to challenge the market share leaders’ positions by continuing to show strong annual revenue growth far exceeding the market norm. The average annual growth rate of these companies was 42.4 percent in 2006, compared to 4.3 percent growth of the market leader during the same period.
According to Young, Some may argue that the reason for high growth rates, is the smaller revenue base. While percentage growth on a smaller revenue base is easier to achieve, the India-centric providers are outperforming (in total dollar gains) many organisations far larger than they are.
The increasing competitiveness of the India-centric service leaders is evident their ranking positions. In 2001, the ranking positions of the top six service providers in India spanned from 68 to 212. By 2006, they were within the top 100.
