In The top five India-based IT services providers grew 23.8 percent in 2011, compared with 7.7 percent growth for the global IT services market as a whole, according to Gartner, Inc.
Cognizant displaced Wipro to become the third-largest Indian IT services provider, and it experienced the highest growth rate of 33.3 percent amongst the top five providers in 2011 (see Table 1).
2011 signaled a change in the mind-set of European buyers, particularly Continental Europe for offshore services, said Arup Roy, principal research analyst at Gartner. Indian providers have historically found it more difficult to gain market share in the Western Europe IT services market than in the U.S. market, but, as a group, the top five increased market share in the region from 2.3 percent in 2010 to 2.8 percent in 2011.
On average, the Tier 1 providers dramatically outperformed the growth rates of Tier 2 and Tier 3 providers, despite the consolidation and acquisitions among some of the smaller firms. There were some standouts, however, with Genpact up 27 percent and Syntel up 21 percent. Smaller providers were charged with creating a more compelling marketing message that went beyond labor arbitrage.
Table 1. Top 5 India-Based IT Services Providers' Worldwide Revenue, 2011 (Millions of Dollars)
|
Company |
2010 Global Rank |
2011 Global Rank |
2010 Revenue |
2011 Revenue |
2010-2011 Growth Rate (%) |
2010 Market Share (%) |
2011 Market Share (%) |
|
TCS |
21 |
16 |
6,980 |
9,031 |
29.4 |
0.9 |
1.1 |
|
Infosys |
26 |
26 |
5,328 |
6,279 |
17.8 |
0.7 |
0.7 |
|
Cognizant |
30 |
27 |
4,408 |
5,875 |
33.3 |
0.6 |
0.7 |
|
Wipro |
31 |
31 |
4,752 |
5,335 |
12.3 |
0.6 |
0.6 |
|
HCL Technologies |
48 |
46 |
2,627 |
3,316 |
26.2 |
0.3 |
0.4 |
|
Total |
|
|
24,095 |
29,836 |
23.8 |
3.1 |
3.5 |
Source: Gartner (April 2012)
The top five Indian service providers have continuously chipped away market share from the large multinational corporation providers, Roy said. In the past five years, they have been increasingly winning large outsourcing deals with a total contract value of more than $100 million. Their target customer segment still remains the Fortune 1000 companies, which is their sweet spot. However, in recent years, these top five providers have greatly expanded their service portfolios and have been cross selling and up selling their application services client base with offerings such as infrastructure services, business process outsourcing (BPO) services, cloud and analytics services.
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