Top five Indian IT services firms grow 13.3% in 2012

Despite slowing growth, growth rate still much better than industry growth, says Gartner

The top five Indian IT services providers combinely grew 13.3% to reach $34.3 million in revenues in 2012 the period when the overall IT services industry grew just 2%, research and advisory firm Gartner said on Tuesday.

This however is lower than the 21.8% growth reported by them in 2011.

The Gartner report includes Cognizant since the company predominantly has an India-based delivery model and its management is largely India-based.

According to the report, even though the growth rate of India-based providers has been slowing for some years, this trend was more pronounced in 2012.

However, “this growth rate is still quite high compared with the IT services worldwide, or the growth of the top 10 global IT services providers”, it added.

The report said the top five Indian IT services companies have improved their market share from 3.5% in 2011 to 3.7% in 2012. Nasdaq-headquartered Cognizant which overtook Infosys in terms of annual revenues in 2012 improved its global ranking to 23 in 2012 from 28 in 2011.

It also said the differences of revenues between TCS and 10th ranked Hitachi is less than $1.5 billion. In 2012, TCS continued with its global ranking of 16.

“The top five Indian service providers have continuously chipped away market share from the large multinational corporation providers. In the past five years, they have been winning large outsourcing deals (those with a total contract value of more than $100 million),” said Arup Roy, Research Director at Gartner.

“Most of these firms have a large-deal pursuit sales team that goes after deals of more than $35 million in contract value,” he added.