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Indian firms beat slowdown with focused regional strategies: Deloitte

Tech Fast-50 companies post 1,947% growth in 2012, compared with 910% a year ago

Raghuvir Badrinath  |  Bangalore 

  • Online Recharge Services Private tops Tech Fast 50 with 5,227% revenue growth
  • E-commerce enablers like payment technology make strong strides forward
  • Increasing presence and impact of internet-based businesses

India’s highest growth are powering through the global financial uncertainty, with the leaders actually increasing their revenue growth rate, says Deloitte. Announcing the 50 fastest-growing Indian for 2012 in the Technology, Media & Telecommunication (TMT) industry vertical, Deloitte says that in this year’s Technology Fast 50 (Tech Fast) rankings, the top five showed a remarkable improvement in the average three-year revenue growth of 1,947 per cent, compared to 910 percent last year, the highest average three-year revenue growth in all the previous editions of the Fast 50 India program since 2005. The Deloitte Tech Fast 50 India Program conducted by Deloitte Touche Tohmatsu India Private Limited (DTTIPL), now in its eighth year, ranks the fastest growing technology companies in India based on their percentage revenue growth over the last three financial years. The average percentage growth for all the top 50 companies this year showed a substantial improvement over last year’s total, at 432 per cent, up from 236 per cent in 2011 – testament to the strength and depth of India’s growth economy. All the top 50 winners of this year recorded a three-year revenue growth in excess of 100 per cent – a phenomenon noted in five of the eight editions of the Fast 50 India program. The overall winner in this year’s ranking is Online Recharge Services Private Limited realising a remarkable 5,227 per cent three-year revenue growth. The second, Amagi Media Labs Private Limited achieved 1,497 per cent, while the third placed Prizm Payment Services Private Limited, grew by 1,190 per cent. “In the past we have seen subdued economic environment skewing the winners list towards mature and well established companies. This year’s results, surprisingly, do not adhere to this trend, says,” Rajiv Sundar, Senior Director, Deloitte Touche Tohmatsu India Private Limited. “Combination of a strong India focus, presence in steadier segments like education, social sector and healthcare aided these companies in achieving their growth rates”, added Sundar. Intra-sector insights In the Software sector, Analytics and Mobile VAS had a sustained presence in this year’s winners list. Though Mobile VAS had a muted presence compared to the surge noted in the previous edition. Security and risk management companies have a strong representation. With tighter regulations combined with e-based or mobile based transactions growing exponentially, this sector may throw up more surprises in the coming years.

Outsourced product developers continued their momentum, especially with the opportunities thrown up by the iOS and Android platforms. Internet portal based companies have significantly increased their presence constituting 18 per cent of the winners list, up from 10 per cent in the previous edition. Whilst Indian e-commerce wave is often highlighted, it is refreshing to note other internet-based businesses joining the growth trajectory along with the e-commerce businesses. There have been strong performances of e-commerce enablers like payment technology and content aggregators. The presence of Media & Entertainment segment remained consistent with the previous edition, whilst Biotechnology and Telecommunications/Networking companies showed a marginal decline in the winners’ composition. E-commerce enablers like Payments technologies are seeing significant traction and attracting a new wave of investment. e-Commerce in conjunction with mobile commerce is expected to be the dominant theme in the coming years. Analytics and Mobile VAS have continued the sustained growth that we have been seeing over the past few years. Outsourced product developers showing continued growth momentum. With the opportunity opened by the iOS and Android platforms, these software specialist houses are no longer dependent on Independent Software Vendors as their clients but can reach out to a global audience directly. App development is gaining momentum with many companies looking to offer a bouquet of product suites aimed at mobility. Cloud based business models are evolving and cloud continues to be a dominant and populist theme. "Though we have seen only a few pure-play cloud based models as winners, most of the winners this year as well as the rest of the market have a strategy that is driven directly or indirectly by cloud adoption. Cloud is a major change agent and is making companies think very seriously on how to adapt or change their business models," Deloitte said. More and more on theme based approach amongst the IT services companies to drive their next round of growth. "We expect companies to focus on certain very specific themes like Healthcare, Energy & Utilities – The difference between their earlier approach towards these verticals and their current approach would be that whilst previously the companies would look at disjointed set of services that they could offer to companies in these verticals, now they are focusing on a more integrated approach. If we take the case of energy & Utilities, companies are trying to offer Business Intelligence and Analytics oriented solutions that become very relevant on adoption of smart grid technology," Deloitte added. Interplay of software and internet with education and healthcare expected to surge in the coming years. Business models enabling content aggregation, interactivity among students, teachers and other stakeholder in the ecosystem and specialized training are segments to watch out for. Healthcare service is also using unique interface of internet and technology to reach services to the mass among other innovative combination of technology and healthcare.

First Published: Sat, October 20 2012. 11:12 IST
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