Dataquest
Publication Date: 23 April 2010                                                              ID Number: G0020024...
The India-based market leaders' market share performance has had a material impact
           on the IT services competiti...
TABLE OF CONTENTS

Analysis .................................................................................................
ANALYSIS

1.0 Worldwide IT Services Revenue for Top Six India-Based
Providers in 2009
Collectively and individually, the i...
Table 1. IT Services Revenue Worldwide for the Top Six India-Based Leaders, 2008-2009
(Millions of Dollars)
              ...
Figure 1. Worldwide IT Services Annual Growth Rates for the Top Six India-Based
Providers, Year to-Year, Since 2003




No...
Share (%)   Share (%)
 Rank      Service Provider                                  2008     2009    AGR (%)        2008   ...
U.S./U.K. exposure in the past couple of years and expanding into other growth markets. With
discretionary spending being ...
Figure 3. HCL's ($2.2 Billion) 2009 Worldwide Revenue Analysis by Service Line




Source: Gartner (April 2010)

Figure 4....
Figure 5. MahindraSatyam's ($1.2 Billion) 2009 Worldwide Revenue Analysis by Service
Line




Note: Gartner estimates for ...
Figure 7. Wipro's ($4.1 Billion) 2009 Worldwide Revenue Analysis by Service Line




Source: Gartner (April 2010)

Figure ...
6.0 Summary
Despite their relatively smaller size compared with the global market share leaders (for example,
IBM's 2009 w...
changing the face of the IT services market, requiring a clear and compelling response from the
leading players.
Will any ...
REGIONAL HEADQUARTERS

Corporate Headquarters
56 Top Gallant Road
Stamford, CT 06902-7700
U.S.A.
+1 203 964 0096

European...
Upcoming SlideShare
Loading in …5
×

Market share analysis india-based providers' performance show mixed results in it services market worldwide 2009 (2)

6,457 views
6,326 views

Published on

Summary:
Collectively and individually, the impact of the six leading India-based IT services providers continued in 2009, with HCL, Cognizant, Wipro, TCS, and Infosys (in order of growth rates) all achieving growth that outpaced the rest of the market,


Key Findings

• In 2009, the top six India-based providers' collective share of the global IT services market was 2.7%, up slightly from their 2.5% share in 2008.
• The largest of the India-based providers, TCS, with $5.7 billion in worldwide revenue in 2009, is ranked No. 25 in overall IT services market share
• The top India-based performers in total IT services revenue growth were HCL (27.6% annual growth on $2.2 billion in revenue) and Cognizant (16.4% growth on $3.1 billion in revenue). In rank order, HCL moved up from 75th position in 2008 to 60th in 2009 and Cognizant moved up from 48th to 42nd in the same time period.
• The top six India-based providers are also clearly diversifying their geographic presence, as well as expanding their service lines


HCL:

HCL recorded the highest growth in 2009, benefiting from the acquisition of SAP consultancy Axon, as well as winning some large total outsourcing deals signed in 2008, revenue of which flowed into the subsequent quarters of 2009. These total outsourcing deals also included rebadging of client employees quite unlike other Indian providers. High growth was also the result of aggressive and focused sales efforts to retain clients. Moreover, HCL experienced relatively little impact in the vendor consolidation activity during the downturn, which signifies high customer satisfaction among HCL's clients; contributing factors of quality process focus, as well as the company's "employee first, customer second" principle. HCL's acquisition of Axon also yielded business growth, as it continued to upsell/cross-sell services to this newly acquired client base.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
6,457
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
401
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Market share analysis india-based providers' performance show mixed results in it services market worldwide 2009 (2)

  1. 1. Dataquest Publication Date: 23 April 2010 ID Number: G00200249 Market Share Analysis: India-Based Providers' Performance Show Mixed Results in IT Services Market, Worldwide, 2009 Dean Blackmore, Allie Young, Arup Roy Collectively the impact of the leading India-based IT services providers continued to incrementally improve in 2009, with Tata Consultancy Services (TCS), Infosys Technologies, Wipro Technologies, Cognizant, and HCL Technologies all achieving growth rates that outpaced the overall market (which declined 5.3%). However, compared with the past, when the growth of these providers clustered in the 20% to 40% ranges, beginning in 2006 their individual growth rates started to diverge, reflecting their different strategies and levels of success. In 2009, this trend was accentuated further, with the global economic crisis being the foremost factor impacting the service sector as a whole. A complete breakdown of market share rankings by service line (consulting, IT management, development and integration, process management, software support services, and hardware support services), platform, and geography for 2009 can be found in the document, "IT Services Market Metrics Worldwide Market Share: Database" available on gartner.com. Key Findings In 2009, the top six India-based providers' collective share of the global IT services market was 2.7%, up slightly from their 2.5% share in 2008. These providers collectively posted stronger growth in the U.S. market (6.5% growth) than they did in Western Europe (2.7% decline). The largest of the India-based providers, TCS, with $5.7 billion in worldwide revenue in 2009, is ranked No. 25 in overall IT services market share; however, it would need to roughly double its revenue to be among the top 10 market share leaders. The top India-based performers in total IT services revenue growth were HCL (27.6% annual growth on $2.2 billion in revenue) and Cognizant (16.4% growth on $3.1 billion in revenue). In rank order, HCL moved up from 75th position in 2008 to 60 th in 2009 and Cognizant moved up from 48th to 42 nd in the same time period. Only Mahindra Satyam's growth rate declined dramatically greater than the overall market negative 26.7%, ending in 87 th position, down from 79 th in 2008; as an aftermath of an executive financial scandal and the subsequent acquisition by Tech Mahindra. The new company Mahindra Satyam is regrouping under new leadership and continues to serve 380 clients. Executives anticipate it will take two years to fully recover from the damage caused by the financial problems. © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner's research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.
  2. 2. The India-based market leaders' market share performance has had a material impact on the IT services competitive landscape; in 2001 market share analysis, their worldwide ranking positions spanned from No. 68 to No. 212; by 2009, their positions spanned rankings from No. 25 to No. 87, proof of their outperforming the market in the past decade, and that the adoption of the global delivery platform is building, yet still nascent in its evolution. The top six India-based providers are also clearly diversifying their geographic presence, as well as expanding their service lines. These providers will likely challenge current market share leaders in key regions and in service lines, such as infrastructure services. It is clear that their offshore services value proposition resonates in the market, and buyers continue to reward them with a growing share of their spending. Recommendations Strategic planners — Review market share performance of these India-based providers. Although the collective revenue growth performance of India-based leaders has declined over the past several years due to their maturity, relatively larger size and, more recently, the macroeconomic environment conditions, the group continues to make incremental market share gains. Service marketers/communication specialists — Continue to refine and communicate a conclusive position on your global service delivery strategy and position; buyers' adoption of offshore service delivery and their willingness to consider the leading India- based offshore service brands continues to increase, making buyers' decisions more complex and providers' strategies for differentiation in global delivery of paramount importance. Service executives/strategic planners — Don't underestimate the aspirations of some of the India-based leaders today to gain market share. Their continued focus on diversifying their portfolio of services will include expansion into cloud and alternative delivery models. If market share leadership is a goal, it will have to be accomplished through an acquisition of considerable size. We also see the potential for the global services leaders' accelerating global delivery capabilities, which could drive industry consolidation — stressing the need for contingency plans. Publication Date: 23 April 2010/ID Number: G00200249 Page 2 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  3. 3. TABLE OF CONTENTS Analysis ....................................................................................................................................... 4 1.0 Worldwide IT Services Revenue for Top Six India-Based Providers in 2009 ............... 4 2.0 Annual Growth Rates for the Top Six India-Based Providers ...................................... 5 3.0 IT Services Revenue in the U.S. for Top Six India-Based Providers in 2009 ............... 6 4.0 IT Services Revenue in Western Europe for Top Six India-Based Providers in 2009 ... 7 5.0 Revenue Analysis of the Top Six India-Based Providers ............................................. 7 6.0 Summary ................................................................................................................. 12 7.0 Recommended Reading........................................................................................... 13 LIST OF TABLES Table 1. IT Services Revenue Worldwide for the Top Six India-Based Leaders, 2008-2009 (Millions of Dollars) ....................................................................................................................... 5 Table 2. IT Services Revenue in the U.S. for the Top Six India-Based Leaders, 2008-2009 (Millions of Dollars) ....................................................................................................................... 6 Table 3. IT Services Revenue in Western Europe for the Top Six India-Based Leaders, 2008- 2009 (Millions of Dollars) .............................................................................................................. 7 LIST OF FIGURES Figure 1. Worldwide IT Services Annual Growth Rates for the Top Six India-Based Providers, Year to-Year, Since 2003 ............................................................................................................. 6 Figure 2. Cognizant's ($3.1 Billion) 2009 Worldwide Revenue Analysis by Service Line ................ 8 Figure 3. HCL's ($2.2 Billion) 2009 Worldwide Revenue Analysis by Service Line ......................... 9 Figure 4. Infosys' ($4.4 Billion) 2009 Worldwide Revenue Analysis by Service Line ...................... 9 Figure 5. MahindraSatyam's ($1.2 Billion) 2009 Worldwide Revenue Analysis by Service Line ... 10 Figure 6. TCS's ($5.7 Billion) 2009 Worldwide Revenue Analysis by Service Line ....................... 10 Figure 7. Wipro's ($4.1 Billion) 2009 Worldwide Revenue Analysis by Service Line..................... 11 Figure 8. Summary Chart of India-Based Leaders' Service Revenue Distribution ........................ 11 Publication Date: 23 April 2010/ID Number: G00200249 Page 3 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  4. 4. ANALYSIS 1.0 Worldwide IT Services Revenue for Top Six India-Based Providers in 2009 Collectively and individually, the impact of the six leading India-based IT services providers continued in 2009, with HCL, Cognizant, Wipro, TCS, and Infosys (in order of growth rates) all achieving growth that outpaced the rest of the market, which was at negative 5.3% (see Table 1). MahindraSatyam, alone, impacted by a corporate scandal in 2009 and a subsequent acquisition, turned in a 26.7% decline — well below the market growth. HCL recorded the highest growth in 2009, benefiting from the acquisition of SAP consultancy Axon, as well as winning some large total outsourcing deals signed in 2008, revenue of which flowed into the subsequent quarters of 2009. These total outsourcing deals also included rebadging of client employees quite unlike other Indian providers. High growth was also the result of aggressive and focused sales efforts to retain clients. Moreover, HCL experienced relatively little impact in the vendor consolidation activity during the downturn, which signifies high customer satisfaction among HCL's clients; contributing factors of quality process focus, as well as the company's "employee first, customer second" principle. HCL's acquisition of Axon also yielded business growth, as it continued to upsell/cross-sell services to this newly acquired client base. Cognizant, on the other hand, continued to show strong growth that is attributable to its customer investment philosophy, strong management oversight, emphasis on a local presence in the countries in which it operates and highly focused industry vertical approach (where it targets a limited number of vertical sectors). Cognizant has been able to drive "mind share" and visibility through its high-quality methodologies, thought leadership in service delivery and strength in portfolio rationalization projects for its clients. Although MahindraSatyam's performance lagged behind other India-based providers, its new leadership team is communicating regularly on its performance. Recent reports from its management outlines the position of its turnaround on a two-year horizon to recover from the damage inflicted by financial irregularities caused by fraudulent activities of former executives (see "Vendor Focus for Mahindra Satyam: Progress Update on Key Milestones"). Positive signs of investment and hiring, retention of clients, and expansion of its delivery operations were recently reported. Other key findings are as follows: TCS maintained its position as the largest of the India-based IT services providers worldwide in 2009, rising from a ranking of 28th in 2008 to 25th in 2009 on revenue of more than $5 billion and a year-to-year growth of 1.2% (in terms of U.S. dollars). The highest annual growth was turned in by HCL Technologies, with 27.6% revenue growth in 2009; Cognizant followed with 16.4% growth and Wipro with 9.5% growth; Infosys turned in a 1.3% decline, ahead of the overall market, yet comparatively lower than its past performance. In 2006, these top six providers accounted for 1.9% of the total worldwide IT services market, and in 2007 their share of the market grew to 2.4%; by 2009, their overall share reached 2.7%. With maturity and new market challenges, however, their market share growth is less aggressive than in the past Publication Date: 23 April 2010/ID Number: G00200249 Page 4 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  5. 5. Table 1. IT Services Revenue Worldwide for the Top Six India-Based Leaders, 2008-2009 (Millions of Dollars) Share (%) Share (%) Rank Service Provider 2008 2009 AGR (%) 2008 2008 25 TCS 5,657 5,725 1.2 0.7 0.7 33 Infosys Technologies 4,504 4,444 -1.3 0.6 0.6 35 Wipro 3,730 4,084 9.5 0.5 0.5 42 Cognizant 2,703 3,146 16.4 0.3 0.4 60 HCL Technologies 1,713 2,186 27.6 0.2 0.3 87 Mahindra Satyam 1,636 1,200 -26.7 0.2 0.2 Totals for Top Indian Providers 19,943 20,785 4.5 2.5 2.7 Top 20 Market Share Leaders 300,047 286,415 -4.5 37.3 37.5 AGR = annual growth rate Source: Gartner (April 2010) Note: MahindraSatyam's numbers represent Gartner estimates for this table, and all following tables/figures in this research note. Gartner estimates are based on secondary data and discussions with financial experts. In 2009, Satyam was acquired by TechMahindra following a financial scandal. At that time, its name was changed to MahindraSatyam and full accounting of its financial accounts was undertaken with auditors. Mahindra Satyam is yet to report its final audited numbers; in April 2010, as reported to the press/media, company executives of MahindraSatyam reported that the company's accounts for the past six to seven years are still in the process of being restated. Gartner will update figures once additional information is provided. 2.0 Annual Growth Rates for the Top Six India-Based Providers For several years, the top six India-based providers individually performed consistently high (plus 30%), but starting in 2008, we began to see a more disparate picture, with varied levels of performance. Figure 1 provides a historical view of the annual growth rates of the India-based leaders. With time and maturity (and corporate upheaval in the case of Satyam), as well as the impact of the 2008-2009 economic recession, the overall growth rates of these companies have moderated considerably and a less-aligned picture has begun to take shape. Although in 2008 we could say that the growth rates for these companies came "down to earth," the 2009 growth rates paint an even more fractured picture — that of maturity, divergence of strategies and performance, and challenges to address an evolving set of buyers' needs in a rapidly changing market. In 2009, growth rates range from a high of 27.6% (HCL) to a decline of 26.7% (Mahindra Satyam). As stated above, when final reports from MahindraSatyam's restated financial accounts are provided, Gartner will update our market share information. Publication Date: 23 April 2010/ID Number: G00200249 Page 5 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  6. 6. Figure 1. Worldwide IT Services Annual Growth Rates for the Top Six India-Based Providers, Year to-Year, Since 2003 Note: Gartner estimates for MahindraSatyam 2007 and 2009. Source: Gartner (April 2010) 3.0 IT Services Revenue in the U.S. for Top Six India-Based Providers in 2009 Table 2 shows the U.S. IT services revenue of the top six India-based vendors. As a group they increased revenue 6.5% in 2009. For comparison, in 2007 the group accounted for 3.6% of the U.S. IT services market, while in 2009, this jumps to 4.3% of the market. As an indication of their collective competitive impact in the U.S. market, each of the providers, with the exception of Mahindra Satyam, gained an incremental (0.1%.) market share; two of the providers (TCS and Infosys) are ranked within the top 20, and five of the six vendors occupy rankings within the top 50. Of note, in 2007, HCL was ranked No. 54, and Satyam was ranked No. 45; in two market share cycles, the fortunes of these two providers have taken different paths — with HCL moving up 13 places to No. 41, and Mahindra Satyam dropping 10 places in market share to No. 55. Table 2. IT Services Revenue in the U.S. for the Top Six India-Based Leaders, 2008-2009 (Millions of Dollars) Share (%) Share (%) Rank Service Provider 2008 2009 AGR (%) 2008 2009 19 TCS 2,833 2,932 3.5 0.9 1.0 20 Infosys Technologies 2,767 2,870 3.7 0.9 1.0 22 Cognizant 2,218 2,472 11.5 0.7 0.8 23 Wipro 2,114 2,358 11.5 0.7 0.8 41 HCL Technologies 925 1,260 36.2 0.3 0.4 Publication Date: 23 April 2010/ID Number: G00200249 Page 6 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  7. 7. Share (%) Share (%) Rank Service Provider 2008 2009 AGR (%) 2008 2009 55 Mahindra Satyam 988 725 -26.7 0.3 0.2 Totals for Top India Providers 11,846 12,617 6.5 3.9 4.3 Top 20 Market Share Leaders 138,785 135,838 -2.1 45.7 46.1 Notes: Gartner estimates for MahindraSatyam for years 2007-2009. AGR = annual growth rate Source: Gartner (April 2010) 4.0 IT Services Revenue in Western Europe for Top Six India- Based Providers in 2009 The India-based providers have had less success in penetrating the Western European IT services market than in the U.S. market. Growth in Europe was a strong focus, and the growing appetite for Western European buyers for offshore services seemed promising. Nevertheless, 2009 was a challenging time in Europe due to the economic conditions, and the India-based providers fared poorer overall than in the past. In our 2007 analysis, these providers reported annual growth of 45% to 87% in Europe; in 2009, only two providers, HCL and Cognizant, reported positive growth rates (21.9% and 35.1%, respectively). In terms of market share leadership, TCS, Wipro and Infosys occupy market share positions within the top 50 of Western European services leaders (see Table 3). Table 3. IT Services Revenue in Western Europe for the Top Six India-Based Leaders, 2008-2009 (Millions of Dollars) Share (%) Share (%) Rank Service Provider 2008 2009 AGR (%) 2008 2009 24 TCS 1,669 1,557 -6.7 0.6 0.7 34 Wipro 1,078 1,074 -0.4 0.4 0.5 36 Infosys Technologies 1,243 1,043 -16.1 0.5 0.4 64 HCL Technologies 497 606 21.9 0.2 0.3 67 Cognizant 435 588 35.1 0.2 0.2 106 Mahindra Satyam 334 245 -26.7 0.1 0.1 Totals for Top India Providers 5,255 5,113 -2.7 2.0 2.2 Top 20 Market Share Leaders 125,216 110,392 -11.8 47.1 46.6 Notes: Gartner estimates for MahindraSatyam for 2007-2009. AGR = annual growth rate Source: Gartner (April 2010) 5.0 Revenue Analysis of the Top Six India-Based Providers Each of the India-based leading providers is pursuing growth in the broad-based IT services market. Although the roots of several of these providers were in the application service market, over time, each has evolved its coverage of the services market, expanding into a broader base of services, such as infrastructure services and business process outsourcing services. Although most of their revenue still comes from application services, overall we have seen a trend to a broadening service base and a growing revenue contribution from infrastructure and business process services. Most India-based players are positioning themselves as end-to-end service providers with full service offerings. Notably, the providers have also been trying to lessen their Publication Date: 23 April 2010/ID Number: G00200249 Page 7 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  8. 8. U.S./U.K. exposure in the past couple of years and expanding into other growth markets. With discretionary spending being hardest hit by the recession, the consulting and development/integration service lines turned in lower performances. Those providers that were highly reliant on project-based application services, not surprisingly faced a challenging decline in user spending for these services (deemed "discretionary"); providers with a broader base of outsourcing deals and product support services typically fared better overall. Expansion of service offerings by India-based providers has enabled them to build and mine existing accounts, as well as increase visibility as full-service providers. Consequently, they are now regularly invited to bid for larger and more-complex outsourcing contracts, requiring multiple services. Notably in Gartner's annual outsourcing contract review for 2009, Cognizant, Wipro, and HCL Technologies each appeared in the list of top 25 providers with largest reported total contract value of deals signed in 2009. Therefore, there is a gradual shift in increasing their revenue share from discrete project-based outsourcing services to annuity-based multiyear outsourcing contracts, thereby ensuring ongoing revenue streams. The approach has involved expanding the portfolio of service offerings, tapping new regions and focusing more on high-value services. Figures 2 through 7 provide Gartner's analysis of the revenue distribution for each provider. Figure 8 provides a summary chart of the India-based market leaders' service line distribution. Figure 2. Cognizant's ($3.1 Billion) 2009 Worldwide Revenue Analysis by Service Line Source: Gartner (April 2010) Publication Date: 23 April 2010/ID Number: G00200249 Page 8 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  9. 9. Figure 3. HCL's ($2.2 Billion) 2009 Worldwide Revenue Analysis by Service Line Source: Gartner (April 2010) Figure 4. Infosys' ($4.4 Billion) 2009 Worldwide Revenue Analysis by Service Line Source: Gartner (April 2010) Publication Date: 23 April 2010/ID Number: G00200249 Page 9 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  10. 10. Figure 5. MahindraSatyam's ($1.2 Billion) 2009 Worldwide Revenue Analysis by Service Line Note: Gartner estimates for MahindraSatyam for 2009 revenue and service line performance. Source: Gartner (April 2010) Figure 6. TCS's ($5.7 Billion) 2009 Worldwide Revenue Analysis by Service Line Source: Gartner (April 2010) Publication Date: 23 April 2010/ID Number: G00200249 Page 10 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  11. 11. Figure 7. Wipro's ($4.1 Billion) 2009 Worldwide Revenue Analysis by Service Line Source: Gartner (April 2010) Figure 8. Summary Chart of India-Based Leaders' Service Revenue Distribution Note: Gartner estimates for MahindraSatyam 2009 revenue and service line distribution. Source: Gartner (April 2010) Publication Date: 23 April 2010/ID Number: G00200249 Page 11 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  12. 12. 6.0 Summary Despite their relatively smaller size compared with the global market share leaders (for example, IBM's 2009 worldwide IT services revenue was $55 billion), the six leading India-based service providers continue to be a force in the IT services competitive landscape. Initially they challenged the leading providers and paved the way for widespread adoption of the global delivery model; their individually strong (and consistent) performance through 2007 showed that the "offshore value" was inarguably a key to their individual — and collective — success. Now, however, we expect to see greater individualism as they posture to improve their market share position and strike their own brand value and identity in the larger IT services market. The perception of these India-based service providers as primarily "low-cost providers" for staffing/project work is gradually changing as they: Compete for higher-quality work in client engagements Qualify and win multiyear/multimillion dollar outsourcing deals Expand into new countries and develop local talent resources — and client bases Build consulting businesses to deepen client relationships and value Add new service lines for long-term investment Deepen and invest in vertical/subvertical expertise Broaden pricing options to include performance-based Expand into cloud services and alternative delivery models Critical to their future competitiveness will be the evolution to "nonlinear" (leveraged) revenue growth of utility and technology-as-a-service offerings. With varying degrees of success, the Indian leaders faced one of the most-difficult economic recessions in history; some performed considerably better than others. This leads us to the conclusion that more autonomy in strategic positioning will be the norm for the future, as these providers face new challenges to seek their unique response to emerging market forces: Growing attrition (once again) in the Indian market as the Indian economy picks up Appreciation of the Indian currency (rupee) against the U.S. dollar Shifting buyer behavior to accept "standardized" solutions Advent of the cloud as the new platform for infrastructure, applications and processes Hypercompetitiveness and market consolidation Protectionist measures in some countries Cost pressures from buyers We expect another challenging year for the IT services market as a whole. With more parity in the global delivery capabilities among leading service providers, the India-based leaders will not be immune from the challenges to retain or grow their share of the market. Clearly, the gap between themselves and the traditional service providers in terms of global delivery competencies and multicountry delivery sites has narrowed dramatically. And cloud adoption is accelerating and Publication Date: 23 April 2010/ID Number: G00200249 Page 12 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  13. 13. changing the face of the IT services market, requiring a clear and compelling response from the leading players. Will any of the top six India leaders aspire to a top 10 market share leader role? Gartner believes that this will only be possible through an acquisition strategy and aggressive investment in more- standardized offerings. 7.0 Recommended Reading "IT Services Market Metrics Worldwide Market Share: Database" "Outsourcing Contracts Annual Review, 2009: Outsourcing Uptake Continued, but Megadeals Declined" "Track Satyam's Milestones to Plan for the Road Ahead" "Vendor Focus for Mahindra Satyam: Progress Update on Key Milestones" This document is published in the following Market Insights: Business Process Outsourcing Worldwide Consulting & Solution Implementation Services Worldwide IT Outsourcing Worldwide IT Services Asia/Pacific IT Services Europe Publication Date: 23 April 2010/ID Number: G00200249 Page 13 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  14. 14. REGIONAL HEADQUARTERS Corporate Headquarters 56 Top Gallant Road Stamford, CT 06902-7700 U.S.A. +1 203 964 0096 European Headquarters Tamesis The Glanty Egham Surrey, TW20 9AW UNITED KINGDOM +44 1784 431611 Asia/Pacific Headquarters Gartner Australasia Pty. Ltd. Level 9, 141 Walker Street North Sydney New South Wales 2060 AUSTRALIA +61 2 9459 4600 Japan Headquarters Gartner Japan Ltd. Aobadai Hills, 6F 7-7, Aobadai, 4-chome Meguro-ku, Tokyo 153-0042 JAPAN +81 3 3481 3670 Latin America Headquarters Gartner do Brazil Av. das Nações Unidas, 12551 9° andar—World Trade Center 04578-903—São Paulo SP BRAZIL +55 11 3443 1509 Publication Date: 23 April 2010/ID Number: G00200249 Page 14 of 14 © 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

×