India’s IT companies, the second biggest source of IT outsourcing services to the World, grew at their fastest pace in four years in the year ended March 2011, according to a compilation by Dataquest Magazine.
The top 200 grew at 25% in the financial year, up from just 8% growth shown in the previous year (2009-10). Together, their total revenue was $ 84 billion or Rs 3,84,250 crore; making it one of the biggest industries in India.
All of the top 20 had revenues of more than $1 billion each and accounted for $54 billion or 64% to the total posted by the 200 firms, showing the skew towards the big ones.
Not surprisingly, except for three, the top 10 were all ‘services’ companies — those which provided services like deployment and maintenance of systems etc, rather than hardware or software brands.
TCS, Infosys, Wipro, HP and Cognizant were the top five IT companies in India, the Cyber Media publication said (see chart above).
While the three India-headquartered firms grew by 12%-25%, HP and Cognizant, headquartered in the US, grew by 30% and 37% respectively.
They were followed by IBM and HCL.
The survey included revenues generated by the Indian units of these companies (from India and abroad) and also excluded any income arising from pure business outsourcing (BPO) activities such as marketing.
Two product distribution companies Ingram Micro and Redington with revenues of Rs 9,766 crore (35%) and Rs 9,274 crore (32%) bagged the No. 9 and No. 10 slot.
Mahindra Satyam made a re-entry into top 20 companies after two years.
The top 200 IT companies in India included 129 Indian companies and 71 foreign companies who are active players in the Indian market.
In general, companies focused on the domestic market have grown faster than those focused on exports. As many as 18 of the 20 fastest growing companies are focused on the India market, DQ said.
Interestingly, the revenues of the 30 companies that followed the top 20 grew at 29%, faster than the 25% growth posted by the top 20 themeselves. “That means they have moved from being followers to challengers,” says Dataquest editor Shyamanuja Das .