IT firms up the ante in revenues

Bengaluru: Many Indian IT services companies are at the cusp of attaining significant revenue milestones as they gain market share in the global IT industry in recent years. Both large IT services companies and mid-tier IT services and engineering services firms are included in the list. Analysts pointed out that India-headquartered firms have emerged as the partners of choice for digital transformation initiatives of global enterprises, leading to such gain. Among mid-tier companies, Coforge and L&T Technology Services are likely to achieve $1 billion revenue run rate in this calendar year. Both companies are reporting revenue growth rate in higher teens in recent time.

Coforge's CEO, Sudhir Singh said that its investments in product engineering, cloud, data, automation and integration capabilities continue to power its path to being a $1 billion-plus firm in 2022. Similarly, engineering services major L&T Technology Services (LTTS) is likely to achieve $1 billion annual revenue run rate in this calendar year.

"We are maintaining a strong 19 to 20 per cent revenue guidance. Additionally, I am reconfirming that we will be a billion-dollar run rate company by Q2-Q3 of FY23," Amit Chadha, CEO & MD of L&T Technology Services recently told Bizz Buzz in an interaction.

Another mid-tier company, L&T Infotech has already crossed the $2 billion annual revenue run rate in the second quarter of this fiscal. Among IT biggies, Tata Consultancy Services (TCS) hit the $25 billion revenue mark in calendar 2021.

Bengaluru-based IT major Wipro's annual revenue run rate crossed $10 billion, a significant milestone for the company in 2021.

"This revenue milestone assumes greater significance because we achieved this while undergoing our largest-ever internal transformation," Thierry Delaporte, CEO and MD of Wipro, said earlier.

Similarly, HCL Technologies has already surpassed the $10 billion revenue run rate and, on its way, to achieve $11 billion revenue run rate this year. According to a report by HDFC Securities, India-headquartered IT services companies have doubled revenue market share from 13.9 per cent in the FY11 to 28 per cent in FY21, while share of foreign-headquartered companies shrunk from 86 per cent to 72 per cent during this period.

"Indian IT services companies are gaining market share as compared to their global counterparts in the last one decade. This pace has accelerated in the last two years. As many companies are surpassing important revenue milestones or very close to those marks, it shows the adaptability of Indian IT firms remain high to the new normal. Huge talent base also plays a critical role in this trend," said a Mumbai- based research analyst.