Top Indian IT cos growth is faster than global IT cos

Though India’s top six IT companies accounted for 1.9 per cent of the total USD 672 bn IT services market in 2006, they are growing at a higher rate than their bigger global counterparts, a study reported.

A study by research firm Gartner stated that six of India`s IT service providers — TCS, Infosys, Wipro, Cognizant, Satyam, and HCL technologies, accounted for 1.9 per cent of the total USD 672 bn IT services market in 2006, compared to 0.5 per cent of the USD 554 bn IT services market in 2001.

Despite their relatively smaller size, the top six Indian IT service providers are 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 the switch companies was 42.4 per cent in 2006, compared with a 4.3 per cent growth of the market leaders during the same period.

Giving example Gartner said despite IBM’s USD 48 bn total IT service revenue, its dollar growth year over year was less than USD 1 bn. TCS, on the other hand, increased its revenues by over USD 1.2 bn in 2006, and achieved this increase from a revenue base 1/18th of IBM’s size.

These companies are collectively referred to as switch companies.

Agency