Indian IT companies are increasingly making their presence felt in the global market and are constantly bagging big outsourcing deals of value of more $ 100 million. The top 5 companies which have done remarkably well are Cognizant, Wipro, Infosys, TCS & HCL Technologies
These IT service companies have grown at a rate of 23.8% whereas the total global IT services market has only grown at 7.7 % according the report by Gartner. In the global ranking, TCS is at 16th rank, Infosys at 26th rank, Cognizant at 27th rank, Wipro at 31st rank and HCL Technologies at 46th rank. Infosys and Wipro have retained their last year rankings and other companies have been able to increase their ranks. Together these 5 companies have been able to garner a market share of 3.5% compare to 3.1% in 2010. The combined revenue of these companies has also gone up to $ 29836 million from $ 24095 million in 2010.
In terms of growth rate, Cognizant has shown a tremendous growth of 33.3% followed by TCS (29.4%) and HCL Technologies (26.2%). Cognizant has now become the third largest IT service provider company taking away the place from Wipro. Cognizant is also tipped to go past Infosys in the coming year.
Western IT services market has always posed a great challenge to the IT service companies of India but these five companies put together have put up a remarkable show and they have increased their market share in this region to 2.8% in 2011 from 2.3 % in 2010.
If we closely analyse the figures let out by Gartner, we can see that the Tier 1 companies have outgrown Tier 2 and Tier 3 companies even though this segment witness a lot of consolidation happening in terms of mergers and acquisitions last year. The only two other companies which have done reasonably well are Genpact which has shown a growth of 27% and Syntel 21%.
In the recent time there has been a remarkable shift in the way the Indian IT service companies are positioning their services for their customers. The Indian companies have slowly started offering specialised services moving away from the usual voice based services and thereby generating more value to the customers. These firms are focusing on wide range of services like cloud and analytics services, BPO services and Infrastructure services apart from the regular services they provide and they are mainly targeting Fortune 1000 companies for their business.
Indian companies like HCL technologies have also changed their pricing models and started adopting new models like outcome based pricing rather than traditional fixed pricing deals. The companies in Western Union and US are interestingly outsourcing their activities not looking at the cost arbitrage but they are increasingly looking at service providers who can partner with them and add value. The Indian IT service companies will have to rise up to this challenge and constantly innovate so as to perform well in the future as well. Innovate or perish will be the main say in the long run and this growth rate which the five companies have achieved is testimony to that fact.