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Big, Getting Even Bigger

Continued from page: 2

Shyamanuja Das

Saturday, August 04, 2007

On the flip side, however, Infosys higher dependence (than others in the group) on the US market could mean bigger worries on margins and lower growth in rupee terms. Also, its cautious approach to acquisitions may slow its growth. However, Infosys growth in productivity last year is good news, and now the productivity growth has a clear and tangible competitorexchange rate changes.

The Top Five
Rank FY 07	Rank FY 06	Group	*Revenue (Rs crore)**		Growth (%)	Manpower (As on 31 March 2006)	Manpower (As on 31 March 2007)	Growth (%)
Rank FY 07	Rank FY 06	Group	FY 06	FY 07	Growth (%)	Manpower (As on 31 March 2006)	Manpower (As on 31 March 2007)	Growth (%)
1	1	Tata	14,841	21,155	42.5	71,970	98,048	36.2
2	2	Wipro	10,193	14,200*	39.3	59,037	67,818	14.9
3	3	Infosys	9,521	13,893	45.9	44,658	59,831	34.0
4	4	HP	9,075	12,450	37.2	21,380	23,778	11.2
5	5	HCL	6,753	9,198	36.2	32,980	45,112	36.8
		Total	50,383	70,896	40.7	230,025	294,587	28.1
Source: DQ estimate CyberMedia Research
*Does not include consumer care and lighting Note: Includes IT & BPO business
The combined growth of Top Five at 41% was signficantly above the previous years growth of 34%. More importantly, the top five grew faster than the industry, unlike last year

The company that celebrated its twenty-fifth year last year saw the CEO position being passed on from Nandan Nilekani to Kris Goplakrishnan, another group veteran.

The five top groups in Indian IT represent a diversity that is so typical of India, whether you look at their background, the composition of their business or the Indian cities from where they run their businesses

HPthe most diversified in the groupincreased its market share in most of its domestic businesses including desktops, laptops, and peripherals. Though still far behind IBM, its domestic services business is picking up. HPs India story is fascinating. Not only does it employ more people in Bangalore than in any other place in the world, HPs captive offshore F&A facility in Bangalore has been the nucleus around which its global BPO business has grown. The only group in the top five which does more business in India than it exports from here, HPs growth of over 37% when taken in that context is extremely impressive.

HCLthe perpetual entrepreneurial groupcelebrated its thirtieth anniversary last year. It grew slowest among the top five due to its domestic arm, HCL Infosystems slowing down. HCL Technologies grew by close to 40%, and, looking at the manpower ramp-up, it may grow even faster this year. In the domestic business, however, it lost its leadership in desktops to HP, and with the talk of the Nokia distribution business (the revenues are not included in our estimates) going down in the current year, it may have tougher challenges. But if its big bet on retail pays off, it could once again have all the smiles.

The combined turnover of all the five groups grew 41%much above last years growth of 34%, while the combined manpower grew 28%. Together, they registered Rs 70,948 crore, that is $15.8 bn, up from last years $11.5 bn.

Shyamanuja Das
shyamanujad@cybermedia.co.in

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