IT companies: Top IT companies gain market share over global firms

“In dollar terms, as per our sample, India-based IT firms’ revenue growth continued to slow down and grew by 0.8% y-y in the Dec-23 quarter,” brokerage firm BNP Paribas said in a report. It was however, ahead of global IT companies‘ revenue growth, indicating continued market-share gains, the report added.India-based companies added 36 basis points (bps) in revenue market share year-on-year basis though they lost 27 bps on a sequential basis, the report said.

The dip in market share sequentially is due to the seasonality of the October to December quarter, which is traditionally a weak quarter due to the holiday season. One bps is equal to one hundredth of a percentage point.

“Quarterly market share may be skewed towards that quarter performance, but YoY growth Indian IT firms have seen more offshoring and investments around AI and Gen AI. The overall market pie is not growing as much but Indian IT firms are gaining market share from global competitors,” said Pareekh Jain, CEO consulting firm EIIRTrend. In terms of service providers, the country’s largest and third largest software services firms Tata Consultancy Services and HCLTech reigned the charts gaining 30 and 24 bps market share respectively, while Infosys gained a meagre 2 bps over a year ago, the report said. From a year ago period – October to December quarter in 2022, the report by BNP’s associate director Kumar Rakesh, pointed out that among the top tier firms, Cognizant, Tech Mahindra and Wipro, continued to lose share by 9, 12 and 19 bps, respectively.