Shan’s Blog

India’s top three IT services firms have increased their share in the country’s export revenues to 41 percent in the current year, up from 26 percent three years ago.

“The top three (TCS, Infosys and Wipro) are pulling further ahead in revenue growth when compared to other players”, Sudin Apte, senior analyst and country head for Forrester in India, told a press conference at Bangalore on Wednesday.

Pointing out that the industry was witnessing a massive polarisation, Apte said, TCS, Infosys and Wipro were growing well above the industry average.

“Over 500-odd firms are growing at or less than the industry average, while some of them struggle with revenue and profit growth. As a result, polarisation of Indian IT firms accelerates with every passing quarter,” he said.

Apte, said for the `billion dollar babies’ — Cognizant, Satyam and HCL Technologies — next two years could prove to be the last window of opportunity to catch up with their larger peers.

Small and medium firms, according to him, are on shaky ground as their “diminishing brands” fail to attract talent, while disperse client base prevents them from building domain skills.

They need to specialise, he stressed.