Infotech Lead Asia: Gartner has released top 5 IT service providers in India based on their revenue market share. TCS is the leading IT company in the IT services market in 2012.
Gartner says the top five Indian providers grew 13.3 percent to $34.3 billion in 2012, exceeding the IT services industry growth of 2 percent.
The growth decelerated for both industry groups, from 21.8 percent and 7.7 percent, in 2011.
Cognizant has become the #2 IT services company, ahead of Infosys.
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.
Table 1. Top 5 India-Based IT Services Providers’ Worldwide Revenue, 2012 (Millions of Dollars)
|Company||Global Ranking 2011||Global Ranking 2012||2011 Revenue||2012 Revenue||2012-2011 Growth (%)||2011 Market Share (%)||2012 Market Share (%)|
Source: Gartner (May 2013)
In the past five years, the top five Indian service providers have been winning large outsourcing deals (with 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,” said Arup Roy, research director at Gartner.
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.