US IT firms outshine Indian peers

[OhioChick]

May 16, 2008 03:27 IST



US-based IT services vendors continue to track better revenues than their Indian counterparts. While revenue of Indian companies grew 38 per cent in 2007, earning only 4.1 per cent of revenue tracked, US-based vendors dominated with 55.4 per cent.

Worldwide IT services revenue totalled $748 billion in 2007 (around Rs 3,141 crore), a 10.5 per cent increase from 2006 revenue of $677 billion, says a report by Gartner, an IT research and advisory firm.

The domestic IT Services market grew 18 per cent in 2007 (in Indian Rupee terms) outperforming overall Asia/Pacific IT Services growth rate, the report states.

"While cost remains a key consideration in the outsourcing services market in India, operational efficiency and business agility is driving most IT services engagements," said Arup Roy, senior research analyst, Gartner.

Across all IT services, IBM continued to be the global market leader, dominating 7.2 per cent of the market. IBM and Accenture delivered strong growth rates of 12.2 per cent and 19.7 per cent respectively.

"This strong growth, combined with strong first quarter results for market leaders, runs counter to the gloomy and widespread economic concerns arising in the United States," said Kathryn Hale, research vice-president, Gartner's worldwide IT services group.

The report says that vendors headquartered in India are ranked lower than the top 20 but performed well as a group in 2007, with a growth rate of 38 per cent.

This is more than three times the market average. Tata Consultancy Services , ranked 28th, is the highest-ranked Indian provider.

"To build on their success in 2007, service providers should focus on selling services that will deliver visible returns in 2008; either in cost, speed to market, or business impact. Apart from that, they should also focus on growing sales in emerging markets that enjoy faster-growing economies and high growth rates," said Hale.

http://inhome.rediff.com/money/2008/may/16it.htm

[IronLionZion]

1. Cool

I just want to point out that what US IT firms do is also called "outsourcing" even if the work is being subcontracted to Americans.

Outsourcing in this sense is here to stay, because it makes business and technical sense. I'm a huge supporter. It's good to see the American firms are doing well. I'll tell you that both IBM and Accenture are terrific firms to work with and they do treat their employees well...as long as they are making big bucks. A bad fiscal quarter or you're on the bench too long, they will drop you like a hot potato.

Making profit is good, but let's make sure that they are creating American jobs too. One Accenture practice opened up big offshore centers in Canada, India, and the Philippines while I was subcontracting from them. I had to remotely manage a team of Accenture Canadians for a project once.

Keep it real,
ILZ

[OhioChick]

2. I Realize the Many Definitions of Outsourcing....

I'm in consulting and have been for some time. I'd love to work in-house again, but these days they want a shit load of experience, but only pay 35-50K.

Sadly enough....Accenture and IBM aren't the epitome of "American" companies. I recently cleaned up an "Accenture" mess and it was one of the shittiest projects I've ever worked on. With wages going up in India, soon Indian companies (Wipro, Infosys, etc.) will take the lead from American Corporations and Indians will be in the same place that Americans are now. It's already happening....Kenya, China, Philippines, Manila, Russia etc.

We're all being sold off to the cheapest bidder and are then pitted against one another. I'm not completely against outsourcing....as long as it's fair. Right now, I don't see it to be.

I'm so damn tired of working 60-80 hr work weeks with no appreciation, overtime pay, having pay cuts instead of raises, etc. I'm a code-monkey who's become a hired whore.

Thinking though about furthering my skills in Security.

Take Care~