New York, May 16 (IANS) Revenues
of IT companies have been growing at a healthy rate but US-based firms
witnessed higher revenue growth than their Indian counterparts.
While revenue of Indian IT companies grew 38 percent in 2007, US-based
service vendors posted 55.4 percent revenue growth, according to a
report by Gartner, an IT research and advisory firm based in
Connecticut.
IT services revenue worldwide amounted to $748 billion in 2007 (Rs.31.94
trillion), a good 10.5 percent increase from 2006.
In India, the domestic IT services market grew 18 percent in the same
year (in rupee terms), outperforming overall Asia-Pacific growth rate in
the sector, the Gartner report stated.
"While cost remains a key consideration in the outsourcing services
market in India, operational efficiency and business agility is driving
most IT services engagements," said Arup Roy, senior research analyst at
Gartner.
The report added that vendors headquartered in India are ranked lower
than the top 20 but performed well as a group in 2007, with a growth
rate of 38 percent. This is more than three times the market average.
Tata Consultancy Services (TCS) is the highest-ranked Indian provider at
No.28 in the world.
Across all IT services, IBM continued to be the global market leader,
dominating 7.2 percent of the market. IBM and Accenture reported strong
growth rates of respectively 12.2 percent and 19.7 percent.
"This strong growth, combined with strong first quarter results for
market leaders, runs counter to the gloomy and widespread economic
concerns arising in the US," said Kathryn Hale, research vice-president,
Gartner's worldwide IT services group.
"To build on their success in 2007, service providers should focus on
selling services that will deliver visible returns in 2008, either in
cost, speed to market, or business impact. Apart from that, they should
also focus on growing sales in emerging markets that enjoy
faster-growing economies and high growth rates," Hale said.
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