Foreign Firms Dominate Indian IT Market

Indian IT companies like Infosys and Wipro have missed a trick while they were bagging deals in foreign countries Indian IT market started e...

Indian IT companies like Infosys and Wipro have missed a trick while they were bagging deals in foreign countries Indian IT market started exploding and the gainers are all Foreign firms this is reverse of outsourcing. India is among the fastest-growing markets for a majority of leading information technology (IT) multinationals (MNCs) and all by focusing upon the fast growing SME business in India which has led to 25-30 percent growth rate in India.
Industry estimates peg the turnover of MNC Firms like Cisco are said to have crossed the billion-dollar mark in domestic sales in 2006-07, and a player like HP India is estimated to have an India turnover that is around $2.5 billion.Indian IT service providers, however, are lagging on this score.Tata Consultancy Services (TCS) is the only player to come anywhere close, with its domestic turnover (including revenues of CMC) totaling a little over $600 million.
Business Standard provides a look at Indian arm of these big MNCs.
IBM India
A couple of days back, IBM India signed a $600 billion, five-year outsourcing agreement with Vodafone Essar. It is already working with Bharti Enterprises and Idea, and has entered into big deals with other Indian corporates as well. Its revenues from these deals have crossed the $2 billion-mark. The management plans to invest $6 billion in India over the next three years.IBM says “We expect our revenues (in India) to reach $1 billion by the end of this calendar year, up from $700 million in 2006, driven by strong factors.”
Microsoft India
Microsoft India now reports directly to the company’s headquarters in Redmond. It is the only subsidiary outside the US where Microsoft has an end-to-end presence through six business units. The company, with an estimated turnover of over Rs 3,000 crore, has reworked its price strategy and is localising its offerings. Its Windows operating system (OS) — XP and now Vista - still has over 90 per cent market share and is a leading player in the server OS segment, too.
Dell India
India has also become the fastest growing market for the $57 billion IT firm Dell. In its third quarter of financial year 2008, the company posted 47 per cent growth in revenues, as compared with 22 per cent in China. Its India turnover stands at around $600 million (Rs 2,400 crore). India is also Dell’s largest employee base (13,000 employees) outside of the United States.
Cisco India
India is also an important market for Cisco where it has already committed $1.1 billion. It will be launching a huge brand re-positioning campaign in the first quarter of CY2008. Cisco’s IP phones have already hit the Indian market with over 200,000 sold over the last few years.
Intel India
Intel India is banking on the mobility boom (laptops, mobiles), gaming, SMEs, e-governance, education initiatives and low-cost computing initiatives in India. It is also banking on its WiMax forays in the country.
Lenovo India
For Lenovo, India is the only PC market, other than China, that contributes around eight per cent of its revenue in the APAC region.The IBM legacy has helped in brand recall — especially for the ‘Think Pads’.
Oracle India
Oracle India, on its part, controls about two-thirds of the domestic database market and is strong in the e-governance area.
Nortel India
Nortel, on the other hand, has bagged multi-million dollar deals to provide solutions to Indian airports and metro-ethernet solutions to the Indian Railways

(via BS)


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