Power Sixes: Six Indian cos up global IT share 4-fold

An interesting article from ET on INDIAN IT companies and their market share in terms of REVENUES per ANNUM.

The top six Indian information technology firms have increased their share in the global IT services market from 0.5% in 2001 to 1.9% in 2006, a study by research firm Gartner said.

However, the trend was not limited to the top six Indian firms. The global top 10 IT services firms, also increased their market share from 22.8% in 2001 to 26% in 2006.

The top 10 IT services players globally in 2006 were IBM, EDS, Fujitsu, Accenture, Hewlett Packard, Computer Sciences Corp, Lockheed Martin, Capgemini, ADP and Northrop Grumman, according to the report. The global IT services market itself has grown from $554 billion in 2001 to $672 million in 2006.

Market Share Global Ranking

		2006	2001
TCS	0.6%	35	68
Infosys	0.4%	43	125
Wipro	0.3%	49	130
Cognizant	0.2%	73	212
Satyam	0.2%	79	153
HCL Tech	0.2%	86	160

IBM, with the global number one IT services ranking, had a 7.2% market share. In comparison, the global ranking of the number one India-centric player, TCS, was at 35. TCS’ stated goal is to be among top 10 IT services firms globally by 2010 with $10 billion in revenues.

“TCS has maintained the market share leading position among these (India-centric) providers in 2001 and in 2006... but Infosys has closed the gap substantially moving up 82 positions to a close follower of TCS at position rank of 43 today,” the report pointed out.

The player that improved its market share most was Cognizant that moved from a global rank 212 in 2001 to a rank of 73 in 2006. Both Satyam and HCL were displaced as a result of Cognizant’s gains, according to the report.

While noting that the 44.3% growth exhibited by these providers was impressive, given that the average growth of the market leaders was 5.4%, the report said the growth was impressive despite coming from a smaller base, because North American or European service providers of similar size and competency did not exhibit the same growth rates consistently.

However, assuming TCS grows at the same rate and IBM’s revenues are unchanged, TCS would still only be a little more than a quarter of IBM’s total services revenues in 2010.

“Although these six leading India-centric providers are currently enjoying phenomenal growth rates compared with the overall market growth rate and the top 10 leaders, it would still them take many more years to surpass the top service provider (IBM) or appear among the top three market share leader roles,” the report noted.




courtesy: ECONOMIC TIMES