IT industry expects 50 per cent growth in the next two years: D&B
Mumbai : Dun & Bradstreet, a leading provider of global business information, knowledge and insight, has released its study on 'India's Top IT Companies 2008'.
The study covers 210 companies, each having an annual turnover of over Rs100 million, and accounting for about 50 per cent of the Indian IT industry, in terms of revenue. The companies showed an average annual growth of around 56 per cent for the period FY05-07, and expected to achieve an average annual growth of 50 per cent over the next two years.
Going forward, 96 per cent of the surveyed companies displayed interest in growing through the organic or inorganic route. Offering value added services, expanding into new verticals and tapping new geographical locations among others emerged as the most popular paths to growth.
IT support & infrastructure management and IT consulting are expected to be the growing service lines for the next year and banking and financial services (BFSI), retail and distribution services proved to be the most promising verticals.
Revenue-wise listing
| Sr. No. |
Company Name |
Total Income (Rs Mn) |
| 1 |
Tata Consultancy Services Limited |
151,565.2 |
| 2 |
Wipro Limited |
135,790.0 |
| 3 |
Infosys Technologies Limited |
135,240.0 |
| 4 |
HCL Infosystems Limited |
118,182.5 |
| 5 |
Siemens Information System Limited |
104,340.0 |
Employee-wise listing
| Sr. No. |
Company Name |
No. of Employees |
| 1 |
Infosys Technologies Limited |
72,241 |
| 2 |
Wipro Limited |
68,000 |
| 3 |
Tata Consultancy Services Limited |
52,805 |
| 4 |
Satyam Computer Services Limited |
28,597 |
| 5 |
Tech Mahindra Limited |
19,749 |
Kaushal Sampat, COO, Dun & Bradstreet India said, ''The IT & ITeS sector has played a key role in the high growth being witnessed in the country's services sector. Exports continue to contribute in a major way to the revenues of the Indian IT industry, accounting for around 66 per cent of the total revenue of $47.8 billion in FY07. Notably, services exports from India reached $81.3 billion in FY07, of which the IT and ITeS-BPO sector contributed over 38.5 per cent. The study revealed that Indian IT companies expect to maintain an average annual growth of 50 per cent in the next two years, further expanding India's position in global services exports.''
Adding further, Sampat said, ''The industry needs to focus on nurturing talent, in order to maintain this growth momentum. Shortage of skilled manpower and high attrition rate emerged as bigger concerns compared to the appreciating rupee and rising salaries.''
The publication will be released by Pari Sadasivan, vice president for human resources at IBM India. Alok Bharadwaj, senior vice president for sales and marketing at Canon India will be the guest of honour, and Najib Khan, COO South for Enterprise Services at Bharti Airtel will be the key note speaker.
Dignitaries from the Indian IT sector and major stake holders in their growth process, will participate in a panel discussion on 'Indian IT Industry - the Road Ahead'.
Key insights revealed by the study include:
- The companies surveyed achieved an average annual growth rate of 56 per cent in the last two years and expect to maintain an average annual growth of 50 per cent in the next two years.
- Offering value-added services and tapping new geographical markets emerged as the most popular growth strategies, adopted by 17 per cent and 16 per cent of the respondent companies respectively.
- 47 per cent of the companies covered, are looking at Tier – II cities such as Kochi, Coimbatore, Guwahati and Pune to establish delivery centres.
- 37 per cent companies of the total sample offer IT services as well as software products.
- Major hurdles faced by the IT industry include shortage of skilled manpower, high employee attrition and the rising rupee.
- Around 43 per cent of the companies feel that the attrition rate will range between 16-20 per cent in the coming year.
- BFSI and Retail & distribution services emerged as the most promising verticals.
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