Tuesday, February 06, 2007

On Indian IT

Two reports from ET caught my eye this morning.

One, which says that the Indian IT cos share in the top 100 contracts is 6%. Thats it? That shows how much room for growth we have.

The share of the India-based IT service providers in the top 100 commercial contracts has increased in 2006 while that of Big 6 IT giants has seen a steady fall, according a advisory firm. TPI, a sourcing advisory firm in its annual 2006 index said that the share of India-based service providers increased from 5% in 2005 to 6% in 2006 while that of the Big 6 has remained stagnant at 48%.

It said that the industry wide contracts with value of $50 million and above saw the share of Indian players growing from 8% in 2005 to 11% in 2006 while that of the Big 6 has drop from 44% to 37%.

The other, also from ET, which says that foreign firms are increasingly getting IT contracts for Indian businesses.

This was evident since some of the top tier firms, if they dont actively stay out of Indian contracts, do not actively bid either - the margins are obviously low.

Thats some food for thought.

1 comment:

Anonymous said...

If India turns IT into a disruptive technology (how? i don't know), the predictions in "Innovator's dilemma" will turn true!