IT companies gain in global ranking: Gartner

S. Ronendra Singh Updated - November 16, 2017 at 03:50 PM.

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Three out of top five Indian IT firms have moved up the global ranking in terms of revenues in 2011.

According to Gartner, Tata Consultancy Services (TCS) moved to rank 16 in 2011 compared to 21 in 2010, Cognizant has moved to the 27th spot compared to 30 in 2010 and HCL Technologies also moved up to rank 46 during 2011 against its 48 in 2010. Infosys and Wipro have held their last year's ranking of 26 and 31, respectively.

Market share of these five companies grew to 3.5 per cent in the worldwide market in 2011 compared with 3.1 per cent in 2010.

Overall, these companies grew at 23.8 per cent in 2011 as compared to 7.7 percent growth of the global IT services market as a whole. However, Gartner did not have any figures of previous year to compare with.

During the year, Cognizant displaced Wipro to become the third-largest Indian IT services provider that experienced the highest growth rate of 33.3 per cent amongst the top five providers in 2011.

TCS grew by 29.4 per cent, while second ranked Infosys grew by 17.8 per cent. Wipro had grown with least percentage at 12.3 per cent during 2011.

HCL Technologies also had a healthy growth with 26.2 percent, Gartner said in its report.

“Indian providers have historically found it more difficult to gain market share in the Western Europe IT services market than in the US market. But, as a group, the top five increased market share in the region from 2.3 per cent in 2010 to 2.8 per cent in 2011,” Principal Research analyst at Gartner, Mr Arup Roy, said.

He said 2011 signalled a change in mind-set of European buyers, particularly Continental Europe for offshore services.

The report said that on average, the tier 1 companies outperformed growth rates of tier-2 and tier-3 providers, despite consolidation and acquisitions among some of the smaller firms.

There were some standouts, however, with Genpact rose 27 per cent and Syntel up 21 per cent. Smaller providers were charged with creating a more compelling marketing message that went beyond labour arbitrage, it said. “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',” Mr Roy said.

However, in recent years, these top five providers have greatly expanded their service portfolios and have been cross selling and up selling their application services client base with offerings such as infrastructure services, business process outsourcing (BPO) services, cloud and analytics services, he added.

Published on May 7, 2012 11:40