Top five Indian IT services firms grew 13 per cent in 2012

Last year, the top five Indian information technology (IT) services providers - Tata Consultancy Services (TCS), Infosys, Wipro, HCL and Cognizant- together grew 13.3 per cent, accounting for revenues of $34.3 billion. During the same period, the overall IT services industry grew just two per cent, research and advisory firm Gartner said today.

However, the companies' growth was lower than 21.8 per cent, their combined growth in 2011.

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

According to the report, though the growth of India-based providers had slowed for some years, the trend was more pronounced last year. However, "this growth rate is still quite high compared with IT services worldwide, or the growth of the top 10 global IT services providers", it said.

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

The difference between the revenues of TCS and 10th ranked Hitachi was about $1.5 billion, the report said. In 2012, TCS continued to hold on to its global ranking of 16.

"The top five Indian service providers have continuously chipped away market share from 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, which goes after deals of more than $35 million in contract value," he added.