IT Scan

August 3, 2004
NASSCOM rankings of IT software, service exporters

NEW DELHI -- NASSCOM, the chamber of commerce of the IT software services and ITeS-BPO industry in India, recently announced the rankings of top-20 IT software and service exporters in India (excluding ITES-BPO revenues).

According to the survey, Tata Consultancy Services (TCS) has emerged as the leader, clocking IT software and services (excluding ITeS-BPO) revenues of Rs. 5,503 crores, followed by Infosys at Rs. 4,709 crores and Wipro with Rs. 3,920 crores, respectively. The combined revenue of the top 20 software and service exporters in the area of IT services, products and technology services stood at Rs. 26,464 crores (US $5.77 billisn) in 2003-04. It witnessed a year-on-year growth of 31.6 percent compared to the total combined revenue of Rs. 20,668 crores in 2002-03. The software and services exports industry (excluding the ITeS-BPO sector), recorded revenues of US $8.9 billion in 2003-04, registering a growth of 25 percent over the revenue of US $7.1 billion in 2002-03.

Jerry Rao, chairman, NASSCOM, said: "The Indian IT software and services companies are truly turning global. A growth of around 30.5 percent during 2003-04 by the software and services industry has placed this sector amongst the highest performers within the Indian market. The top 20 software and services exporters continue to account for nearly 65 percent of the total IT software and services exports."

Kiran Karnik, president, NASSCOM, added: "While the top 20 IT software and service exports continue to drive the overall growth of the Indian IT industry, SMEs performed well during 2003-04. Two Indian companies are now in the billion-dollar export league, and we expect a few more to join them in the near future. The robust performance by software and services exporters is evidence of the tremendous value that the industry is providing in terms of quality, productivity and reliability."

Source: NASSCOM

This list does not include companies such as Cognizant, which are US listed companies but have significant offshore operations in India. In 2003-04, Cognizant recorded revenues of Rs 1,893 crore, which would have placed it sixth on this list were they to be ranked. In addition, Syntel, Covansys, Intelligroup -- all with an India-centric global delivery model - are excluded from this list.

Despite challenges such as the volatility of the rupee, Indian IT companies witnessed significant growth in revenues. This has been possible as Indian companies are moving beyond traditional service lines being able to draw more strategic business as well as bag larger contracts from their customers and tap new geographies. Indian IT companies, apart from consolidating presence in traditional verticals such as BFSI, diversified into new verticals such as telecom, retail, utilities and healthcare. Some leading players also moved into new services lines in the IT services arena such as IT consulting, packaged software implementation and systems integration.

Apart from the Indian companies, MNCs are doing an increasing amount of their software development and design work at their captive centres in India. In the coming years, IT software and service project execution will take place through a global delivery model, with most companies offering three-tier delivery and a network of global centers.

Contact:
NASSCOM
Tel: +91-11-2301-5416
shweta@nasscom.org
www.nasscom.org