Indian IT services top global growth

The top 10 Indian information technology service providers grew 19.9 per cent last year, compared with 5.8 per cent for the worldwide top 10 IT service providers and 3.1 per cent growth for the global market.

This reinforces the belief that India’s IT service providers are well out of downturn times and back on their growth trajectory, said Gartner in a report. Eight of these top 10 providers reported revenue of more than $1 billion, with cumulative revenue representing almost 50 per cent of the offshore industry from India in 2010.

“The top five India-based providers grew by $4.5 bn in 2010. While the India providers constitute only a small percentage of the total industry, collectively the group has had a resounding impact on the market. The top five providers represented 93.7 per cent of the growth achieved by the top 10 as a group, continuing the theme that leaders are pulling away from the pack and that market share gains by the smaller players are more likely to come with consolidation and not organically,” said Arup Roy, principal research analyst at Gartner.

Among the top five India-based providers, Tata Consultancy Services gained three ranks to move up to 21st position in the global IT services ranking of service providers. Cognizant experienced the strongest growth in 2010 (40.1 per cent), and the greatest absolute dollar value increase ($1.3 billion).

“Recognizing the importance of diversification, Indian providers are expanding their geographic reach, as well as expanding their service line mix, while maintaining a focus on sustaining operating margins. Of the top 10 Indian providers, only Mahindra Satyam reported a decline in 2010 revenue (minus 10.2 per cent), as the company was still coming out of the accounting scandal unearthed in 2009,” said Roy.