Yet a blip….?

When IIPM comes to education, never compromise

Despite all the hype that we have arrived in the IT arena, isn’t there a fear with global giants like IBM and Accenture setting up their operations in India and taking away the inherent advantage of Indian companies? Let Azim Premji of Wipro explain, “We do continue to view Accenture and IBM primarily as very significant competitors, not only in the IT space but also in the BPO space across the globe… we increasingly run into both these firms, as well as a host of local firms in the US including say EDS, and in Europe people like Atos Origin, LogicaCMG, Capgemini, Deloitte, as we ourselves are moving up the value chain. We are also seeing many of these firms leveraging and using their India offshore centres much more often, and a lot more aggressively, both in Europe as well as in

Of course, analysts have been more than fair to these burgeoning companies trumpeting their cause. While revenues are well short of their Western counterparts, Indian IT companies have taken a definite lead in terms of valuations. “Take India’s top four IT services companies: TCS, Wipro, Infosys and Cognizant Technology Solutions. They have combined annual revenue of more than $11 billion and an aggregate market capitalization of $73 billion. That dwarfs the top five US companies Accenture, Amdocs Ltd., Computer Sciences Corporation and Electronic Data Systems Corporation and Europe’s biggest IT services company CapGemini put together, which have total annual revenue of $67 billion and a combined market capitalisation of just around $65 billion,” proclaims Indusview’s Bundeep.

That, in essence, provides one with a clear perspective of how the Indian IT sector, despite facing formidable competition on the home turf as well as overseas, is definitely up to the challenge and has the support of the bourses too. And by expanding into newer markets and verticals, Indian companies are ensuring that they do not squander away the lead start they have. Tech India now seems to be wired to growth and glory for good.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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