There were three major headlines in 2007-08. The continuing shadow-boxing
between the Congress and the Left (to be nuclear or not to be), the IPL-ICL
fracas, and the fluctuating dollar-rupee relationship and its impact on
export-oriented businesses, particularly the IT exporters.
The Indian IT services vendors, people who actually defined the offshore
exports paradigm, seemed to be the worse affected; the dollar depreciation and
ironically its subsequent appreciation (in cases where many hedged aggressively)
affected most of them including the Big Five.
Some statistics in the DQTop200 illustrate their predicament. With half of
the Top 20 constituted by export-oriented companies, the growth rate of this
exclusive club came down to 24% in FY 08 (from 41% in 07). The fortunes of the
Top 20 exporters in DQ 200 make the picture more precise. While these companies
had grown by 45% in 07, the corresponding growth figure dwindled down to only
29% in 08.With ninety-five of the DQ 200 being services companies (most of them
involved in exports), the impact of the dollar-rupee fluctuation has been the
over-riding theme in the DQ Top 20 this year. Interestingly, what this also did
was ensure that most of these companies had to seriously foray into the domestic
Indian marketit was no more a question of adding one more geography, but more
of business laissez-faire. Many associated the relatively insipid year for even
a giant like Infosys to their failure to start domestic ventures.
The Top 20 Club 2007-08 |
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RANK 06-07 |
RANK 07-08 |
COMPANY | CEO/COUNTRY HEAD | Revenue (Rs crore) | Growth (%) | ||
06-07 | 07-08 | 06-07 | 07-08 | ||||
1 | 1 | TCS | S Ramadorai | 17,560 | 21,465 | 34 | 22 |
2 | 2 | Wipro | Suresh Vaswani/Girish Paranjpe | 13,252 | 16,884 | 41 | 27 |
3 | 3 | Infosys Technologies | S Gopalakrishnan | 13,240 | 15,758 | 45 | 19 |
4 | 4 | Hewlett-Packard India | Neelam Dhawan | 11,917 | 15,454 | 37 | 30 |
5 | 5 | IBM India | Shanker Annaswamy | 8,245 | 10,179 | 52 | 23 |
6 | 6 | Ingram Micro | K Jaishankar | 6,896 | 8,620 | 25 | 25 |
7 | 7 | Satyam Computer Services | Ramalinga Raju | 6,111 |
7,889 | 34 | 29 |
11 | 8 | Cognizant Technology Solutions | Francisco D Souza | 4,584 | 6,310 | 83 | 38 |
8 | 9 | Redington India | PS Neogi/EH Kasturi Rangan | 5,023 | 6,280 | 23 | 25 |
9 | 10 | HCL Technologies | Vineet Nayar | 4,930 | 6,200 | 39 | 26 |
12 | 11 | Cisco Systems | Naresh Wadhwa | 4,424 | 5,837 | 30 | 32 |
10 | 12 | Oracle India | Krishan Dhawan | 4,753 | 5,808 | 52 | 22 |
15 | 13 | HCL Infosystems | Ajai Chowdhry | 3,522 | 5,058 | 32 | 44 |
14 | 14 | Intel | Praveen Vishaknantaiah | 3,760 | 4,310 | 14 | 15 |
NEW | 15 | Accenture | Harsh Mangalik | NEW | 3,800 | NEW | NEW |
16 | 16 | Tech Mahindra | Vineet Nayar | 2,900 | 3,636 | 133 | 25 |
18 | 17 | Microsoft India | Ravi Venkatesan | 2,580 | 3,263 | 26 | 26 |
24 | 18 | SAP India | Ranjan Das | 1,774 | 3,260 | 33 | 84 |
21 | 19 | Dell India | Sameer Garde | 2,000 | 3,200 | 66 | 60 |
19 | 20 | Lenovo India | Amar Babu | 2,562 | 3,014 | 35 | 18 |
Two IT services companies Teledata, which had moved up several ranks in the 2006-07 after its acquisition of eSys, and Patni Computer are no more among Indias Top 20 IT companies. Also, Moser Baer, the global media giant, is not among the largest 20 IT companies anymore. These displaced companies have been replaced by Accenture, an IT services player, and SAP which is into package software, and PC biggie Dell. |
Moser Baer, last years #20 clocked Rs 2,074 crore in revenue, while this years #20 Lenovo, reached the Rs 3,014 crore mark |
The hit taken by exports vendors have been somewhat offset by the performance
of the vendors primarily operating in the domestic market. This trend has been
increasingly visible for the last few years, and this year it somewhat acted as
a balm for the DQ 200. Unfortunately, here too, the growth has not been secular
at all. That explains why despite companies like SAP and Acer registering triple
digit growths, the Top 20 domestic players grew by only 27% (down from 31% in
07).
Ibrahim Ahmad & Team DQ
maildqindia@cybermedia.co.in
Interestingly, three Indian companies make place for three MNCs in this years Top 20 club. Another case of globalization |
A look at the Top 200 Indian IT companies reveals that 95 of them are IT services companies and 20 offer packaged software. Both together add up to 57.5%, up from the 53% last year. There were 26 companies in the distribution business, and 45 were into hardware and networking products. The interesting thing is that out of the Top 200 of India, only 5 companies including Wipro, HP, IBM, and Sun, had positioned themselves as players which dealt in multiple activities including hardware, software and services |
Fourteen companies registered triple digit growth, five of them growing more than 200%. This growth was secular too as it spread across types of companiesfinancial services, entertainment and hardware. |
In the DQ Next30, the last company Rolta clocked Rs 954 crore where as FY 07 #50 clocked Rs 700 crore |
Though the domestic story was better than the exports, it wasnt much to write home about. Compared to a 31% growth in FY 07, last fiscal saw it come down to 27% |
In the DQ 200 we had 10 foreign CEOs, and only 2 women. While globalization is on, gender equality still looks like a mirage |
Oil companies were not the only ones to be impacted by the dollar depreciation. Compared to the 45% growth in FY 07, the top exporters in the DQ 200 could garner only 30% growth last fiscal. The credit for that goes largely to Financial Technologies which grew a stupendous 673% |
Financial Technologies recorded the maximum growth of 673%; with its revenue jumping to Rs 1,253 crore from Rs 162 crore. Bartronics recorded the second highest growth (321%) in DQ 200; its revenue touched Rs 270 crore from Rs 64 crore |
The principles we have followed |
n All the company revenues are from April 2007 to March 2008. Though different companies have different financial years, we have taken April-March revenue for each company. n All revenues of services companies do not include their BPO revenues. BPO companiesboth pure-play as well as the BPO operations of multi-services firmsare covered separately in DQ Top 20 Vol III n However, we have included BPO manpower in total number of employees n For companies headquartered in India, we have take the entire IT revenue; for companies that do business in India, we have taken the entire India IT revenue; for non-Indian companies who export out of India, we have taken only the revenue generated by the Indian legal entity. That holds true for captive units as well. n In case of companies, who have not provided us with revenues, we have done our own estimates. For domestic business, we have used sources like distributors, channel partners, SIs, customers and competitors to get unit shipments and average selling value to estimate the revenue. For export services, we have based it on average headcount and average salary, taking into accounts factors such as the type of work and type of services to calculate total revenue. n In case of non-Indian companies that have their development/delivery centers, we have added their India sales revenue to the export revenue and present the total figure. Disclaimer: While we have taken utmost care to stick to these principles, there may be instances, especially with very small companies, where we may not have succeeded in following these principlessay being able to deduct BPO revenuecompletely. |
NEW FACES
Suresh Vaswani, joint CEO, Wipro |
Girish Paranjpe, joint CEO, Wipro |
Neelam Dhawan, MD, HP India | Vineet Nayar, CEO, HCL Tech | Harsh Manglik, chairman & MD, Accenture |
Ranjan Das president & CEO SAP India |
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Praveen Vishakantaiah, president, Intel India |
Sameer Garde, country GM,Dell India | Amar Babu, MD, Lenovo India | Jeya Kumar, CEO MphasiS |
Ratul Puri, CEO, Moser Baer | Pramod Bhasin, president & CEO, Genpact |
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Jignesh Shah, MD, Financial Technologies India |
Akash Deep Sharma, head of Operations/COO, eSys Information Technologies |
Anurag Jain, regional managing director, Perot Systems |
Sanjay Dhawan, President, Aricent | Hitesh Lokhandawala, CEO, Nortel Networks India |
Sanjeev Sinha, MD, Siemens Information Systems |
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PR Chandr-ashekhar, VP & CEO, Hexaware Technologies |
George Van Der Merwe, COO, SES Technologies |
Jangoo Dalal, Managing Director & CEO, D-Link India |
L Madhu, APSIS technologies, CEO |