Six cos earn 30% of IT industry revenues

Written by Corporate Bureau | Mumbai, Feb 28 | Updated: Feb 29 2008, 05:09am hrs
The growing IT industry saw over 29.3% of its revenues coming form top six companies -- Tata Consultancy Services (TCS), Wipro, Infosys Technologies, Satyam Computer Services, HCL Technologies and Tech Mahindra, says Dun and Bradstreets study on Indias top IT companies 2008. The firm has taken into account about 210 companies of which 86 are top listed IT firms that operate in the software development - packaged software, software services, hardware segment or IT services space and have revenue above Rs 10 crore.

This indicates the dominance of the six IT companies in the sector, while only 13.36% was contributed by remaining 44 companies. The report suggests that 60% of the companies surveyed were small size firms and accounted for 4.8% of the total turnover in FY07, and mid size firms that were about 33% and accounted for 20.8% and large size firms contributed 74.4% to the total turnover.

The report reveals that exports continue to contribute around 66% of the total revenue of $47.8 billion in FY07. Notably, services exports from India reached $81.3 billion in FY07, out of which IT & ITeS-BPO contributed over 38.5%. The study revealed that Indian IT companies expect to maintain an average annual growth of 50% in the next two years, further expanding Indias position in global services exports. Going forward, 96% 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 BFSI, retail & distribution services proved to be the most promising verticals. The study also focuses on challenges faced by the IT industry. While attrition and rupee appreciation remain bigger issues, competitions from countries like China and Malaysia that have low cost and better infrastructure are being seen as a major challenge for Indian IT companies.