US-based IT companies report higher revenue than Indian rivals

by Editor 5/16/2008 3:45:00 PM
IT consulting jobs,tech jobs,consultant jobs

Information technology companies have been reporting a steady, healthy growth of revenue, but U.S.-based IT companies have had higher revenue growth than their Indian peers according to a new study by IT research and consulting firm Gartner.

In 2007, Indian IT companies' revenue grew 38 percent and U.S. firms' saw a 55.4 percent growth. Revenue from IT services totalled $748 billion globally last year, which is 10.5 percent more than in 2006.

The domestic IT services market in India chalked an 18 percent growth, which was a better result than the overall Asia-Pacific growth rate in the sector.

“While cost remains a key consideration in the outsourcing services market in India, operational efficiency and business agility is driving most IT services engagements,” says Gartner’s senior research analyst Arup Roy.

India-based IT services vendors performed well on the whole, chalking a 38 percent growth rate, but none of them were ranked in the top 25 IT service providers. India’s best ranked IT vendor is Tata Consultancy Services (TCS) at #28.

IBM remains the world’s market leader in IT services with 7.2 percent of the share and a growth rate of 12.2 percent. Accenture also reported a strong growth rate: 19.7 percent.

Kathryn Hale, vice-president of research at Gartner’s worldwide IT services group, said:

“This strong growth, combined with strong first quarter results for market leaders, runs counter to the gloomy and widespread economic concerns arising in the U.S. To build on their success in 2007, service providers should focus on selling services that will deliver visible returns in 2008, either in cost, speed to market, or business impact. Apart from that, they should also focus on growing sales in emerging markets that enjoy faster-growing economies and high growth rates.”

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