As the IT services industry continues to evolve, two leading Indian companies, Tata Consultancy Services (TCS) and Infosys, have outpaced the global market in the four years leading up to 2024. According to a Paris-headquartered IT advisory firm, Pierre Audoin Consultants (PAC), these two companies grew at a rate more than double the global industry, which expanded 14% to $1.04 trillion.
The success of TCS and Infosys can be attributed to their ability to adapt to the post-pandemic world and work with hyperscalers. This strategy enabled them to focus on cloud-centric deals and deliver work from remote locations, making them more agile and responsive to client needs. As a result, they have gained market share, with TCS and Infosys ending the 12 months through March 2024 with $29.1 billion and $18.6 billion in revenue, respectively.
In contrast, foreign companies such as DXC Technology, International Business Machines Corp, and Fujitsu have lost market share due to internal restructuring and currency depreciation. Accenture and Infosys have been the biggest beneficiaries, with Accenture’s market share jumping 120 basis points to 5.7% at the end of 2024.
According to PAC, Infosys’s revenue growth of 45% was higher than that of TCS, HCL Technologies Ltd, and Wipro Ltd, which grew 32%, 34%, and 33%, respectively. This growth has been driven in part by the company’s ability to massively revamp its sales approach and land numerous large deals, especially in Europe.
As Christophe Chalons, chief analyst at PAC, noted, “If you focus on comparable vendors, Infosys and Accenture reported substantial growth over the last four years, slightly higher than TCS and HCL, then Capgemini and Wipro, finally Cognizant. Accenture was extremely successful with its ecosystem strategy, positioning the company as the #1 partner for all the leading technology providers.”
For homegrown IT service providers, the post-pandemic dream run has been stymied by the Russia-Ukraine conflict that began in February 2022. Clients of IT services companies have had to increase costs due to supply chain disruptions and hold-back their tech spending. However, TCS and Infosys have managed to grow their Europe business at a CAGR of 7.95% and 14.27%, respectively, which has been a major booster for both companies.
As Phil Fersht, chief executive of HFS Research, pointed out, “The major four India-heritage providers all took full advantage of the pandemic to drive cloud-centric deals with the Global 2000 firms. A lot of this was driven by the sheer speed with which they adapted to delivering work from remote locations and their nimbleness to respond to client needs.”
For now, Accenture, TCS, IBM, Deloitte, and NTT Data are the world’s five largest IT service providers, with market shares of 5.7%, 2.8%, 2.8%, 2.5%, and 2.2%, respectively, according to PAC data. As the IT services industry continues to evolve, it will be interesting to see how these companies adapt and respond to the changing landscape.
Original Source: https://www.livemint.com/industry/infotech/indian-it-companies-tcs-infosys-hcl-technologies-wipro-accenture-cognizant-it-service-providers-covid-11743317955399.html
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Publish Date: 2025-03-31 05:25:00
