I recently did an article about the recovery in the IT services sector in 2010.
This was based on analysis from Gartner. It revealed that businesses spent 3.1% more on IT services globally in 2010 than in 2009, signalling a recovery from the latest recession.
The report also mentioned that Indian IT service providers continue to grow much faster than their Western counterparts, at almost 19% as a group.
This is significant when you consider of the top five global suppliers, in terms of revenue, which were IBM, HP, Fujitsu, Accenture and CSC. Accenture grew sales the most with a 6.1% increase over 2009.
Gartner has now released the sales figures for the Indian companies. Take a look at the top five Indian suppliers, in terms of revenues, and their growth rates in 2010.
TCS 18%, Infosys 19.9%, Wipro 16.4, Cognizant 40.1% and HCL 26.7%.
How long can this go on for? According to Arup Roy, principal research analyst at Gartner, it will level off.
He said: “It is evident that since these top five providers have grown considerably (the top five are above $2bn in revenue). Coupled with factors, such as multinational companies (MNCs) levelling their cost advantage with robust global delivery resulting in stiff competition and changing competition landscape and buying behaviour with alternative delivery models, it will now be difficult for the current models that are focused on cost advantages, to sustain continued growth rates of more than 25% as they did a few years back.”