Skip to main content

Europe regained market in Indian IT industry

How Europe trumped US for Indian IT companies


NEW DELHI: For the longest time, US was the largest as well as the most dominant market for the $150-billion software services industry. While it still contributes to two-thirds of the sector’s revenues, over the past few quarters, it is countries in Europe – especially in Continental Europe – that are bringing the maximum growth, defying the concerns around Brexit. Under a lot of pressure, US – especially in the banking and financial services (BFSI) industry –growth rates have reduced to low, single digits for top IT companies. 

Meanwhile, Europe – traditionally considered shy of outsourcing (except for UK) – is growing at a much faster pace. The percentage share of revenues contributed by the US has also been steadily coming down. 

While announcing the September quarter results, the CEO of Tata Consultancy Services (TCS) Rajesh Gopinathan said from a geography perspective, growth was “once again” led by a strong 5.3% quarter-on-quarter growth in Continental Europe and 5.7% growth in Latin America. “North America continues to grow below-company average, primarily due to the softness in BFSI and retail,” said Gopinathan. 

Similarly, in the case of Wipro , while US grew at a rate of 0.5% sequentially and 2.8% year-on-year during the September quarter, revenues from Europe were up 5.8% sequentially and 9.8% year-on-year. During the analyst call, Wipro’s CEO Abidali Z Neemuchwala admitted that the Americas have been under stress. He added it is mainly because of the stress in the healthcare sector. “The moment healthcare bottoms out, I feel quite comfortable with our traction in the US market. We see good traction in Asia-Pacific and emerging markets. Europe, we are finding good traction…” he added. 

The stress is visible in the case of revenue contribution of the US to the company’s revenues too. For instance, US contributed to 56% of TCS’ revenues at the end of September 2016, which has fallen to 54.1% at the end of September 2017. 

Comments

Post a Comment

Popular posts from this blog

Royal Enfield Continental GT 650 Twin: All You Need To Know Here is everything that you need to know about the Royal Enfield Continental GT 650 Twin.   Here is everything that you need to know about the new 650 cc Royal Enfield Continental GT 650 Highlights The RE Continental GT 650 will be launched in India in Mid 2018 It shares the engine, parts and components with the Interceptor 650 We expect the pricing to be Rs. 4 lakh - Rs. 4.5 lakh Along with the Royal Enfield Interceptor 650 Twin, the company also gave us a glimpse of the rather good-looking Continental GT 650 Twin. This marked the first occasion that Royal Enfield showcased motorcycles with a parallel-twin engine. The Interceptor and the Continental GT 650 share the same chassis and engine, of course. But that's where the similarities end broadly. A first look at the Continental GT 650 might lead you to believe that the bike is absolutely similar to the standard Continental GT w...
Post a Comment
Read more »trendingdestination.blogspot.com

Airtel subse badiya 47 plan

Airtel Rs 47 Prepaid Plan Benefits Aforementioned, both Airtel and Vodafone are offering similar benefits with this prepaid plan. Airtel is offering a total of 7500 local, STD and national roaming seconds with this plan, which converts to a total of 125 minutes. Furthermore, the plan also offers 50 SMS and 500MB of 2G/3G/4G data for the entire validity period of 28 days. Airtel Rs 47 vs Vodafone Rs 47 Plan Comparison Vodafone India, on the other hand, is also providing similar benefits of 7500 seconds voice calling, 50 SMS and 500MB at Rs 47 and it’s an open market plan too. While both Airtel and Vodafone introduced this Rs 47 prepaid plan, Idea Cellular has come up with a Rs 75 prepaid plan with better benefits. Idea Cellular Introduces Rs 75 Prepaid Plan Idea’s all-new Rs 75 prepaid plan gives a user 300 minutes of voice calls even on national roaming, 100 SMS and 1GB of 2G/3G/4G data and that too for a period of 28 days. But Vodafone and Airtel ar...
Post a Comment
Read more »trendingdestination.blogspot.com

Maruti Suzuki Introduces Extended Warranty

Maruti Suzuki Introduces Extended Warranty On All Cars Up To 5 Years The Maruti Suzuki Extended Warranty programme 'Forever Yours' is available in three plans - Gold, Platinum and Royal Platinum, which covers all cars under the company's stable.     The extended warranty can be availed before the standard warranty lapses Highlights The Gold plan includes an extended warranty for 3 years/60,000 km Regular wear and tear parts like tyres, bulbs, battery are not covered The Nexa cars do not get the Gold extended warranty plan on offer Improving the after sales and service experience, Indian auto major  Maruti Suzuki  has launched the 'Forever Yours' extended warranty programme for its complete range of cars across the standard and Nexa models. At present, all Maruti Suzuki cars are offered with a standard 2 year/40,000 km warranty, which can be now extended for a longer period, depending on the package you choose. The extended warranty programm...
Post a Comment
Read more »trendingdestination.blogspot.com