Thursday, January 27, 2011

Indian IT Companies in 2015

Crystal Ball for 2015

Top 3 Indian IT companies are TCS, Wipro and Cognizant

TCS has maintained its number one position consistently

Wipro has made quiet a bit turnaround under leadership of Rishad Premji. He after taking over rein from his father made some dramatic changes. He diluted his equity and gave more ESOPs to employees. He increased the employee salaries to make them comparable with high paymasters such as Cognizant. He was also lucky as Wipro’s earlier focus and leadership on verticals such as telecom, utilities and green energy paid him handsome dividends in recent times.

Cognizant has been a fascinating growth story of erstwhile Satyam spinoff. Cognizant even reached number 2 status for a brief period before being over taken by Wipro. Still the difference between Cognizant and Wipro is minimal and couple of good quarters can make Cognizant again number 2.

Infosys has slipped from Top 3. Now it is at Number 4 position. Infosys was late in focusing on emerging markets( including India) and new verticals. The Infosys board has requested Narayan Murthy the Chief Mentor to take over as CEO and bring the company back in Top 3.

HCL another Indian IT firm a contender for Top 5 slot has been recently sold to Accenture. Accenture after failing to break into Indian and emerging markets agreed to acquire HCL.

Tech Mahindra which earlier acquired scam hit Satyam failed to make it in Top 4. Mahindras revaluated their strategy and now they are focusing on only two verticals i.e Telecom and Manufacturing and they are market leaders in both of these verticals. In telecom vertical, Mahindras were market leaders earlier too. In manufacturing vertical, apart from contribution from Satyam, Mahindras acquired Geometric Software and L&T Infotech. Now Mahindras are emerging as leaders in manufacturing vertical too.

iGate Patni merger had limited success. The combined entity failed to break into top 4. Now company has been focusing only on BFSI sector and has also acquired Headstrong a niche BFSI company. Company is now a strong BFSI company.

Mindtree is concentrating on product development and telecom verticals. Mindtree acquired Aricent, Tavant and Sasken to keep up its leadership in these verticals.

A high profile IT executive is reportedly in talks with few private equity players to acquire few Tier 2 companies such as Hexaware, Zensar, Polaris, NIIT and develop a big company out of it to compete with big four.

In last two years many niche IT services companies have emerged. These are entrepreneurial ventures started by former executives of big companies who believe small and niche companies too have place in the IT service ecosystem.

Will all these companies and their respective ranking survive in 2020. Time will tell.