With cumulative revenue of the top 10 Indian IT service providers reached $28.7 billion representing almost 50% of the offshore industry from India, overall the IT services providers in India saw a reacceleration in growth in 2010, according to Gartner, Inc.
The top 10 Indian providers grew 19.9 percent, compared with 5.8 percent for the worldwide top 10 IT service providers and 3.1 percent growth for the global market.
Gartner analysts said these results reinforce that India’s IT services providers are well out of downturn times and back on their growth trajectory. Eight out of these top 10 providers reported revenue of more than $1 billion, with cumulative revenue representing almost 50 percent of the offshore industry from India in 2010.
“The top five India-based providers grew by $4.5 billion in 2010,” said Arup Roy, principal research analyst at Gartner. “While the India providers constitute only a small percentage of the total industry, collectively the group has had a resounding impact on the market. The top five providers represented 93.7 percent of the growth achieved by the top 10 as a group, continuing the theme that leaders are pulling away from the pack and that market share gains by the smaller players is more likely to come with consolidation and not organically.”
Among the top five India-based providers TCS gained three ranks to move up to 21st position in the global IT services ranking of service providers. Cognizant experienced the strongest growth in 2010 (40.1 percent), and the greatest absolute dollar value increase ($1.3 billion).
“Recognizing the importance of diversification, Indian providers are expanding their geographic reach, as well as expanding their service line mix, while maintaining a focus on sustaining operating margins. Of the top 10 Indian providers, only Mahindra Satyam reported a decline in 2010 revenue, – (10.2 percent), as the company was still coming out of the accounting scandal unearthed in 2009,” said Roy.