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Indian IT firms' revenues rise 29%

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CIOL Bureau
New Update

MUMBAI: The world market for information technology services grew 6.2 percent to $569 billion last year aided by growth in outsourcing, with U.S.-based companies attracting 59 percent of the market, Gartner Inc said.

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Despite a growing outcry against outsourcing, India's share of the services pie was a mere 1.4 percent, according to the preliminary study by research firm Gartner.



But Indian firms' revenues rose 29 percent, compared with just four percent growth among U.S. based providers.

"Accelerating activity in offshore outsourcing, in which companies shift jobs across national borders, contributed modestly to the overall growth," Gartner said in a statement.

IT management and process management services grew fastest at 10 percent and 9.3 percent respectively, whereas consultancy services grew only 0.1 percent as customers continued to avoid large or technically difficult projects, Gartner said.

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Outsourcing has become a hot issue in the United States and in other Western countries as multinational companies move services jobs to low-wage destinations such as India. It would remain important to the industry, Gartner said.

"Through 2004, outsourcing will continue to drive the growth in the worldwide IT services market, with IT management and process management growing faster than consulting services and development and integration services," Kathryn Hale, principal analyst for Gartner's worldwide IT service said in a statement.

Gartner ranked the world's top IT service providers in 2003 as IBM, EDS, Fujitsu Ltd, Computer Sciences, Hewlett-Packard, Accenture Ltd, Lockheed Martin, Northrop Grumman, Automatic Data Processing and Hitachi.

© Reuters

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