New Delhi: Indian IT companies are crying over the currency impact and increasing wage pressure. However, one look at their earnings seems to tell a different story.
The top 20 IT firms operating in India, including TCS, Wipro, Infosys, IBM, Intel and Microsoft, earned revenue of USD 28 billion in 2006-07, registering a 42 percent year-on-year growth, reveals a latest survey.
Out of the 20, Indian companies—Wipro, Tata Consultancy Services, Infosys, Satyam, HCL Technologies, Teledata Informatics, Redington India, HCL Infosystems, Tech Mahindra, Patni Computer Systems and Moser Baer—had earned USD 17 billion.
These 11 firms engaged a total of 3,42,000 software and BPO employees, an annual survey on IT firms by Cybermedia group`s flagship publication Dataquest said today.
Their global competitors, including HP, IBM, Ingram Micro, Oracle, Cognizant, Cisco, Intel, Microsoft and Lenovo, recorded a 39 percent growth in revenue at USD 11 billion with 1,44,380 employees.
According to Dataquest publisher Pradeep Gupta, India`s IT industry is now at a mature and respectable size with healthy growth on a substantial base.
"It was just four years ago that TCS crossed one-billion- dollar mark in sales. Now, not less than 12 of the 20 are over that milestone."
Echoing the same view, the magazine`s Chief Editor Prasanto K Roy said: "from competing as offshore or onsite it services companies with back offices in India, Indian services majors are getting truly global with multiple locations."
Most Indian firms reported higher revenues from Europe and are making efforts to deepen their engagements.
The `Europe entry strategy’, adopted by many IT services firms to accelerate their business growth was rewarded amply with the US dollar weakening sharply, while the euro and the UK pound remaining steady or gaining further, Dataquest said.
However, exports to the US was hit, it added.
The survey also found that it firms have started focusing on the Small and Medium Businesses (SMB). IBM earned about 35 percent of its revenue from this segment while Oracle had close to 4,500 SMB customers by the year-end, of which a significant number was added last year.
Besides, many of the large companies, including IBM, Microsoft, Sun and Oracle, had a clear target of expanding into the interiors of India. IBM has set a target of building a presence in 17 small cities by the end of 2007, the survey said.
With excerpts from a PTI report
Comments
0 comment