Top 5 Indian IT SP revenues increase by 23.8% in 2011

The top five India based IT services providers' revenue, in the global IT services market, increased by 23.8% in 2011 as compared to 7.7%, said a report by Gartner. ognizant has the highest growth rate of 33.3% amongste top five providers in 2011 namely TCS, Infosys, Wipro and HCL Technologies.

TCS revenue grew by 29.4% in 2011 as compared to 0.9% in 2010. The third largest player is the HCL Technologies, it hasa growth rate 26.2% in 2011 compared to 0.3% in 2010. nfosys has stood fourth with a growth rate of 17.8% in 2011 as compared to 0.7% in 2010. Wip

On average, the Tier 1 providers dramatically outperformed the growth rates of Tier 2 and Tier 3 providers, despite the consolidation and acquisitions among some of the smaller firms. There were some standouts, however, with Genpact up 27 percent and Syntel up 21 percent. Smaller providers were charged with creating a more compelling marketing message that went beyond labor arbitrage, said the report.

“2011 signaled a change in the mind-set of European buyers, particularly Continental Europe for offshore services,” said Arup Roy, principal research analyst at Gartner. He added, oviders have historically found it more difficult to gain market share in the Western Europe IT services market than in the U.S. market, but, as a group, the top five increased market share in the region from 2.3 percent in 2010 to 2.8 percent in 2011.”

“The top five Indian service providers have continuously chipped away market share from the large multinational corporation providers,” Mr. Roy said.

He added, “In the past five years, they have been increasingly winning large outsourcing deals with a total contract value of more than $100 million. Their target customer segment still remains the Fortune 1000 companies, which is their 'sweet spot.'"