US-based clients currently contribute around 60% of Indian IT majors revenue. Infosys recently said that it will cut dependency on the US market to 40% of its total revenue, while boosting revenues from Europe and other countries. Speaking to FE, consulting company director-research Sabyasachi Satpathy said that currently 3-5% of Indian IT vendors have a non-US focus.
As emerging geographies expand IT adoption through outsourcing/off-shoring, we expect EMEA and APAC to contribute 40% and 15% of the Indian IT exports respectively over the next 5 years, he said.
NeoIT said that markets in the UK, France and Germany contribute 8% of Indian IT exports, while those in Asia and Oceania, excluding Japan and Singapore, account for 3.1%. Markets in the middle-east contribute 1.2% of total revenues for the Indian software industry.
Investments advisory research company Tholons said that its recent survey of emerging markets for Indian software indicated a shift towards non-US markets. The application development market in Europe is growing at 80% annually, said Tholons principal Vinu B Kartha. Meanwhile IT vendors are also sharpening their focus on the countrys domestic market. Indian market grew in prominence over the past two years. Its base is very low, given that it is a new focus area for suppliers. IBM, Wipro and TCS have built a foot hold in the market here, Satpathy said.