The Indian IT industry has shown rapid growth and continues to expand operations and presence in global markets. In the last five years, the industry has grown by an average 29% per annum, and is expected to sustain the growth momentum. The industry is estimated to touch US$ 90 bn by 2010. The vast opportunities opening up for the IT sector along with its fragmented nature prompted us to initiate this study on ‘India’s Top IT Companies 2007’.

A striking feature about the IT industry that came to fore during the exercise was its vastness. For this maiden publication, we began with an initial database of over 8,500 companies that were operating in the IT space. Of these, 182 companies feature in the publication; contingent on direct response received from the company, or authenticated data available in the public domain.

The companies profiled in the publication accounted for 45% of the Indian IT industry, in terms of revenue, in FY06. There is a high concentration among the top 10 companies, which together accounted for 68% of the total income of companies featured in the publication, and 31% of the total IT industry. In terms of employee count, the publication covers over 32% of the total IT employee size.

In the list of 182 companies, 44% of the companies are into software product, and may have associated IT services or ITeS-BPO operations. Around 25% of the companies have a presence in the hardware segment and may have associated IT services or software development. Another 20% are only into IT services while the remaining 10% are operating in the IT services and ITeS-BPO segment.

Of the 182 companies, 67% of the companies were servicing the BFSI segment, 55% telecom and 54% the manufacturing vertical. Government & defence and healthcare & life sciences were the other major verticals in which around 43% of the companies had a presence. In terms of service offerings, 83% of the companies offered more than one service. More than 50% of the companies offered more than three services, especially in the areas of custom application development, application management, system integration and IT consulting.

Location wise, Bangalore, Delhi (NCR Region), Mumbai and Chennai continues to be the most favoured destination for IT companies to carry out their operations. The survey revealed that more than 50% of the respondents were ready to expand their operations to Tier-2 cities.

Going forward, we expect the IT industry to remain on the growth trajectory. Though foreign exchange fluctuations, availability of skilled resources and wage inflation are likely to add pressure on the growth and profitability of the sector, volume growth would continue in the near future.

India’s Top IT Companies 2007 has attempted to capture the essence of India’s IT sector. D&B India is confident that the publication would provide the right platform, and will continue to endeavour towards recording the changing dynamics in the IT industry for posterity.

Kaushal Sampat
Chief Operating Officer
Dun & Bradstreet India