According to outsourcing consultancy firm Gartner Inc., Indiaís top five IT services providers posted a bullish growth rate of 23.8%. However, the global market for IT services posted single-digit growth at 7.7%.
Of the five IT services providers, Cognizant posted the highest growth rate with 33.3%, taking Wiproís spot as the third largest Indian IT vendor. The other three are TCS, Infosys, and HCL Technologies.
Gartnerís principal research analyst, Arup Roy, said 2011 marked a change in the purchasing behaviour of European clients towards offshore services. Moreover, comparing the market in Western Europe and US for IT services, Indian providers find it harder to gain traction on the former. Collectively, the five firms increased their market share in the region from 2.3% in 2010 to 2.8% in 2011.
The growth rates of Tier 2 and Tier 3 vendors were lower than those in the Tier 1 range, but some companies managed to outdo those in their bracket such as Syntel which grew 21%, and Genpact with a 27% growth rate. Meanwhile, smaller players were presenting to investors that IT outsourcing is more than just cutting costs.
Roy added that the five Indian IT vendors are slowly positioning themselves among the large multinational players in the market. Also, they were able to accumulate large outsourcing deals over the years, collectively valued $100 million. They have also diversified their service offerings and expanded their portfolios by offering business process outsourcing (BPO) services, cloud and analytics services, as well as infrastructure services.