Domestic Forces
The domestic market became a key growth driver in the last fiscal. HCL
Group's domestic revenue shot up by 46%, at Rs 3,524 crore. For Wipro,
domestic revenues grew by 37% with the financial year closing at Rs 2,759 crore.
Wipro Infotech, the arm responsible for the Middle East and ASEAN countries
besides India, made impressive gains bagging four major deals-from Sunmar,
Optimix, a Chennai-based large global oil exploration company, and HDFC
Bank-the last being the biggest deal in the IT outsourcing space for the
company, anticipated to fetch Rs 360 crore over the next 10 years. For TCS, the
landmark Tata Teleservices (TTSL) deal, estimated at over Rs 1,000 crore and
spread over five years, was the best example of the hot potential of the
domestic market. Under this contract, TCS will manage the IT infrastructure of
TTSL and Tata Teleservices in the Maharashtra region.
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Ratan
Tata, Tata Group
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Touched $3 bn, way ahead
of competitors in India. Manpower headcount crossed 60,000
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Acquired FNS, bringing
core banking deployment expertise; Comicron acquisition gave BPO
expertise in South America; Pearl Group JV made it strong in the
life insurance and pensions industry in the UK
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Tata Technologies'
acquisition of UK-based INCAT Technologies for Rs 400 crore
complemented its engineering and design services expertise
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Azim
Premji, Wipro
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Acquisitions, plus big
'total outsourcing' wins in the domestic market against global
competition
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Employee strength in
global IT business crossed 50,000
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A key differentiator,
the product engineering services business, crossed a half-billion
dollars, as did revenues from Europe
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Launch of 'Bharat PC',
for adverse environments in semi-urban and rural geographies
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Nandan
Nilekani, Infosys
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Revenues crossed $2 bn
and the company has big focus on training and re-skilling
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'One Infy' service
for large accounts helped bring in five banking orders
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Headcount crossed
50,000; as the company added 17,000 people
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Nine clients contributed
over $50 mn each and the company gears for more large contracts
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Balu
Doraisamy, HP
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Strong sales performance
across all three lines of business: PCs, printing, and enterprise
products and services
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Thurst on services, and
product margins. Rollout of major banking and telecom deals including
BoI, BoB, SBI. 'Microverticals' SMB focus for SMB
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Ramp-up in GDIC and
other exports divisions. Gillette, P&G and other major projects
offshored. e-Global back-office group begins 25% commercial BPO work
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Shiv
nadar, HCL
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Group-wide common
branding was followed by corporate campaigns to boost credibility and
stock value
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Focused on big deals in
software and services; emerging services were key growth drivers;
Revenues crossed $1 bn mark
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Maintained lead in
Indian desktop market; launched "10K PC"
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Evolved digital
lifestyle strategy as growth engine, bringing in iPods and other
products; handsets brought in over half the group's business
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People Power
By rough estimates, the IT industry employed 1.6 mn people (IT and ITeS) at
the close of FY 2005-06. The Top 5 employed 236,125 people, which is nearly 15%
of the strength of the industry. The top IT companies are today looking at
manpower addition to scale up operations or to address emerging opportunities.
While recruitment was one way to scale up, the other was acquisitions.
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People
& Productivity
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Company
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Revenue
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Headcount
|
Productivity Rs Lakh/person
|
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2004-05
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2005-06
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2004-05
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2005-06
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2004-05
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2005-06
|
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Tata
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11,187
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14,269
|
48,822
|
71,970
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22.9
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19.8
|
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Wipro
|
7,698
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10,209
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42,385
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59,037
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18.2
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17.3
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Infosys
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7,131
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9,521
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32,178
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44,658
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22.2
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21.3
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HP
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7,095
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9,075
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15,485
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21,380
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45.8
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42.4
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HCL
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5,396
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6,762
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24,720
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32,980
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21.8
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20.5
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Top 5 Total
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38,507
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49,836
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163,590
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230,025
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23.5
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21.7
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| HP's
productivity figure stays above the average as always with its revenue
coming from the higher margin domestic market. More and more IT players
looking to scale operations through a huge increase in manpower. A small
proportion of this are foreign recruits as HP sets up offices in foreign
shore to strengthen its global delivery model in the lines of that being
offered by IBM and EDS. |
Infosys Technologies alone is looking at hiring another 25,000 this year. TCS
added 23,748, while HCL, 8,260 people. The Top 5, together, are likely to
recruit 120,000 and the industry 200,000-making the Top 5 responsible for
nearly 60% of the new additions. Interestingly, TCS strengthened its presence in
the BPO space by acquiring the BPO arm of the US-based Pearl Group and Chile's
Comicron. TCS's Indian BPO operation caters to the BFSI, telecom, retail,
travel, hospitality and pharmaceuticals verticals, but still remains much
smaller than its peers. With 950 employees at Pearl Group and 1,257 in Comicron,
it's trying to catch up with rivals Progeon and Wipro BPO.
Finally, the Top 5 are not leaders through scale and numbers. They are
trend-setters, market movers, and leaders in the true sense.
Bhaswati Chakravorty
bhaswatic@cybermedia.co.in Page(s) 1 2
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