Top Indian Outsource Companies – Nasscom Survey

August 2, 2009

Nasscom announced the findings of its annual survey on the performance of the Indian IT-BPO services sector for FY 2008-09 and outlook for FY 2009-10. According to the findings, the IT sector reached US$58.8 billion in FY 2008-09 in revenue, up from US$52 billion in FY 2007-08.

Domestic growth
The revenue from export for the Indian IT-BPO industry recorded growth of 16.3 per cent and clocked revenues of US$46.3 billion in FY 2008-09 up from US$40.4 billion in FY 2007-08. The domestic segment grew by 21 per cent to register revenues of Rs 57,000 crore in FY 2008-09 from Rs 47,000 crore in FY 2007-08.

Within the export segment, IT services have grown by 14.7 per cent to clock revenues of US$26.5 billion; BPO exports are up by 16.5 per cent registering revenues of US$12.7 billion. Engineering services and product exports clocked revenues of US$7.1 billion, growing at 11 per cent in FY 2008 -09.

Value chain
Nasscom Chairman Pramod Bhasin said: “While growth was synonymous with industry performance in the past decade, resilience and efficiency was the thrust in the year 2008-09. In the face of a severe economic downturn in key markets, the industry was able to deliver a high growth of over 16 per cent and retain its position as a strategic global sourcing destination.

The industry also enhanced its thrust on building a globalised value chain, with a 35 percent increase in global delivery centers since 2007”.

The domestic market witnessed enhanced focus in FY 2008-09, with large transformational deals in telecom and e-governance and contract value of outsourcing deals growing by 32 per cent. Domestic BPO got a special boost with over 40 per cent growth in this period.

The year ahead
Nasscom President Som Mittal said, “In a difficult year the industry has re-engineered itself to partner with its clients. Increase in fixed price contract, shift from onsite to offshore and end-to-end transformational deals helped the industry to get over 90 percent repeat business from its clients.” Nasscom expectes that in 2009-10 export revenue will grow between 4 to 7 per cent to reach US$48-50 billion. It said that in the last few weeks the industry has witnessed some stabilisation in the demand environment with improvements in GDP growth rates, stock indices upswing that could indicate early signs of recovery.

However, worldwide IT spending growth is expected to decline in 2009 and 2010. The environment continues to be challenging with global demand ecosystem being weak; absence of large deals; vendor consolidation and pricing pressures.

“The industry in its first quarter results has demonstrated sustained focus with increased operating margins and enhanced utilization. The Nasscom survey estimates that the IT-BPO export revenues will grow by 4-7 per cent,” said Bhasin.

Top 20 IT Services Exporters 08-09

1 Tata Consultancy Services
2 Infosys Technologies Ltd.
3 Wipro Ltd
4 HCL Technologies Ltd.
5 Tech Mahindra Ltd
6 Patni Computer Systems Ltd.
7 MphasiS Ltd
8 Oracle Financial Services Software Ltd
9 Aricent Technologies (Holdings) Ltd
10 CSC India Pvt Ltd
11 Larsen & Toubro Infotech Limited
12 Prithvi Information Solutions Ltd
13 Polaris Software Lab Limited
14 MindTree Ltd
15 Mascon Global Ltd
16 3i Infotech Ltd
17 HSBC Software Development (India) Pvt. Ltd.
18 Hexaware Technologies Limited
19 Mastek Ltd.
20 Sonata Software Ltd

Note: Includes IT Services, Engg Services, Software Products and Offshore Product Development revenues. Ranking is based on revenue data submitted by companies. List does not include some companies whose corporate headquarters are
located outside India, but have significant India-centric delivery capabilities.

Top 15 BPO Exporters: 08-09

1 Genpact India Pvt Ltd
2 WNS Global Services (P) Ltd
3 IBM-Daksh Business Process Services Pvt. Ltd.
4 Wipro BPO
5 Tata Consultancy Services BPO
6 Firstsource Solutions Ltd
7 Aditya Birla Minacs Worldwide Ltd
8 Aegis Ltd
9 Infosys BPO
11 EXL (India) Pvt Ltd
12 Intelenet Global Services Ltd
13 Hinduja Global Solutions Pvt Ltd
14 24/7 Customer Pvt Ltd
15 MphasiS BPO

Note: This list does not include some companies whose corporate headquarters are located outside India.