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A lot is made of IT jobs being sent to India. But the CIO Executive Briefing blog was a bit surprised to find out that the top six India-based IT service providers -- Satyam, Wipro, Infosys, TCS, Cognizant and HCL Technologies (which are also becoming known by the acronym Switch) -- accounted for just 2.4% of the total worldwide IT services market last year, according to numbers just released by Gartner.

But they are growing – and capturing bigger deals.

In 2006, the group accounted from 1.9% of the total worldwide IT services market, according to Gartner.

“With such strong growth rates that exceed the overall market, the India-based IT services providers are increasing in their competitiveness and taking market share away from the rest of the market. Increasingly they are competing in larger outsourcing deals, with deal values routinely exceeding $100 million and spanning multiple years,” said Arup Roy, a senior research analyst at Gartner, in a statement released with the numbers.

“While application development and management services remain the bulk of their revenue stream, there is a gradual diversification in other service lines, such as consulting and remote infrastructure management services, where they have experienced high growth. Expansion of service offerings by India-based providers has enabled them not only to build and mine existing accounts, but also to increase visibility as full-service providers”, he went on to say. "Consequently, they are now regularly invited to bid for larger and more-complex outsourcing contracts, requiring multiple services. There is a gradual shift in increasing their revenue share from discrete project based outsourcing services to annuity-based multi-year outsourcing contracts, thereby ensuring ongoing revenue streams. The approach has involved expanding the portfolio of service offerings, tapping new regions and focusing more on high-value services.”

Gartner also ranked the Switch vendors.

Who’s the biggest? TCS.

Here’s the list (with 2007 revenue):

1. TCS: $5.16 billion

2. Infosys: $3.76 billion

3. Wipro: $3.41 billion

4. Cognizant: $2.14 billion

5. Satyam: $1.94 billion

6. HCL: $1.65 billion

Comments (2)

	1. 06-16-2008 14:33
	A new question to be asked: Should we look to these vendors to be the "Coordinating Firm" for multi-party (hardware, operations, applications) sourcing deals in the future ? Registered

John Stevenson

	2. 04-09-2009 12:32
	I totally agree about SWITCH's growing power and competitiveness, which in turn is backed by a strong government structure. This is proved by the strong backing that the government provided to scam hit Satyam Services. It was remarkable from the part of the government.  India being the country of brains is going to expand more, in terms of economy and market share.   There are still some untapped areas in the market, which needs the attention of various firms. Registered

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