I am happy to launch the inaugural edition of Dun & Bradstreet’s publication on the Indian IT industry, ‘India’s Top IT Companies 2007’. At a time when the country is consolidating its position as the preferred IT service provider, this publication will prove to be a valuable resource for organisations considering working with Indian companies, as well as a platform for the Indian IT industry to reach out to key potential clients. Dun & Bradstreet’s global footprint and market reach will ensure that the publication is established as the premier information resource on Indian IT service providers.

India continues to create economic milestones, having clocked GDP growth rate of 9.2% in FY06. Growth momentum continues to be maintained at 8.9% year-on-year for the first nine months of FY07. The manufacturing and utilities sectors showed healthy growth, as did India’s expanding services sector. The Indian IT sector remains the mainstay of the almost 11% growth experienced in the services segment of the Indian economy.

The global economic expansion remained buoyant in the first half of 2006, with activity in most regions meeting or exceeding expectations. Growth was particularly strong in the United States in the first quarter of 2006, although it has slowed subsequently. It is estimated that global growth for 2006 would be at 5.1%. The forecast for 2007 is slightly lower, at 4.9%. Although the Indian IT industry is driven by exports, its inherent robustness will allow it to sustain its growth prospects as demand conditions remain optimistic.

However, some of the risks that the Indian IT companies will have to factor in and hedge against include exchange rate fluctuations, shortage of skilled manpower, limitations with regard to domestic infrastructure and competition from global players and other countries offering manpower at low cost like China, Philippines and Vietnam. Overall, the future prospect of the Indian as well as the global IT industry looks promising. It is estimated that the global IT spending would grow at a CAGR of over 7% during 2005-10 to cross US$ 2 tn. With the success of the Global Delivery Model adopted by global IT companies and increase in offshore spending by the US and Europe, countries like India are expected to reap rich benefits.

Dun & Bradstreet shall endeavour to continue meeting your high expectations of ‘India’s Top IT Companies 2007’. I look forward to receiving your feedback and suggestions.

David J. Emery
President
International Partnerships & Asia-Pacific