Sunday, September 13, 2015

Overview of Indian IT Industry Landscape






























Indian IT industry is often presented as a labor arbitrage Industry, however in  the last decade or so there has been quick advances of Indian IT players into higher value solutions such as digital technologies-Cloud and Analytics. Information technology is playing an important role in world today & has transformed India's image from a slow democracy to a land of innovative entrepreneurs. The IT sector in India is generating 2.5 million direct employment.India is now one of the biggest IT capitals of the modern world and all the major players in the world IT sector are present in the country

Information Industry in India consists of two major components- IT Services and BPO. The sector has increased its contribution to India's GDP from 1.2% in 1998 to 7.5% in 2012.According to NASSCOM, the sector aggregated revenues of US$100 billion in 2012, whereas export and domestic revenue stood at US$69.1 billion and US$31.7 billion respectively, growing by over 9%. According to Gartner, "Top Five Indian IT Services Providers" are Tata Consultancy Services, Infosys, Cognizant, Wipro and HCL Technologies.While the first USD 100 billion landmark can be attributed to cost and quality advantage, the next USD 100 billion will be a combination of higher-value services and increasing non-linear growth. To sustain this growth, Indian IT-BPM industry is focusing on greater efficiencies, verticalized structures, geographical presence, IP based solutions, domain and increased collaboration across all stakeholders.


A Snapshot of Indian IT Giants ( TCS, Cognizant, Infosys)




























Key Observations:- 
  • Infosys has highest percentage of repeat business among three.
  • Infosys has highest billing rate
  • Cognizant is the most aggressive in acquisitions, while others are catching up!!
  • TCS has the lowest employee cost

( Recent news from Infosys COO confirms that infosys is considering to look into margins to increase top line)
http://www.moneycontrol.com/news/business/margins-to-be-under-pressure-for-12-18-months-infosys_3028041.html )


SWOT Analysis 






























Key Ratio Comparison

Interesting Insights!!































Revenue Vs PAT Growth
















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