Top IT Outsourcer's Revenue 2006-07 Despite challenges of finding and retaining the right talent, regulatory and infrastructure issues, and differing impact of changes in the rupee’s value globally, the Indian tech companies are a promising lot. The country’s top IT outsourcers’ revenues for the year 2006-07 are as follows: Company Revenue US$ Revenue Growth (%) Profits (%) Employees TCS 4.3bn 41% ↑ 43% ↑ 89,4191 Wipro 3.44 bn (149.43bn INR) 41% ↑ 44% ↑ 67,8182 Infosys 3.1bn 44% ↑ 53% ↑ 72,2413 Note: The results are based on U.S. generally accepted accounting principles (GAAP). Please visit the companies’ websites for latest figures.

Nasscom's Estimate Nasscom estimates Indian tech revenue to top US$ 50bn during fiscal 2007-08, a 24%-27% increase based on last year’s revenue increase by more than 30% to US$ 40bn. If this trend continues, the revenues might reach US$ 60bn by the end of fiscal 2009-10. An interesting thing to observe would be whether these revenue numbers look attainable in the years to come.

China's Challenge While the Indian industry is coping with varied issues, China is slowly rising as a silent crusader towards offshoring. China’s software services market size is small when compared to India’s; but it has over 13,000 software companies. In 2000, software exports were worth US$ 400m but by 2005 the figure grew to US$ 3.6bn, and according to China's Ministry of Information Industry, it is estimated to grow to US$ 12.5bn by 2010. The software outsourcing market in China is expected to grow at 40% year on year from 2005-2009, as per reports from China Software Outsourcing Promotion Committee4.

China is becoming a strong competitor to India; the country is working on issues such as English language comprehension, attrition and lack of experienced and skilled man power to succeed India in outsourcing. Chinese infrastructure is better when compared to India’s and regulations are favorable to setting up operations in the country. According to reports by IDC5, Chinese cities would have taken over Indian cities by 2011 as favorable offshoring destinations.

How India and China take steps to cope against current prevailing issues of H1B visa regulations, global outsourcing slowdown and intellectual property protections will actually decide the position of global outsourcing leader.

Interesting Articles IT Outsourcing: Indian tech revenues to hit new heights - Silicon.com   Read Could China Supplant India in Outsourcing? – Market Scan by Forbes  Read BusinessWeek - Asia  Read Special Reports – "Inside China" - Silicon.com  Read

TCS 22,750 employees in the 2006-07 and currently has a staff strength of over 89,400 professionals from 67 different nationalities across 47 countries. (Source: http://www.zdnetasia.com/news/business/0,39044229,62006104,00.htm) Wipro had 67,818 staff in its global outsourcing business as of March 31 of which 50,354 were in IT services, and 17,464 were in BPO. (Source: http://www.networkworld.com/news/2007/042007-indias-wipro-revenue-up-41.html) Infosys added 19,526 employees during the year, taking the total number of employees to 72,241 as on March 31. The company’s staff attrition rate increased to 13.7% for 2007-08 from 11.2% in 2006-07. (Source: http://www.networkworld.com/news/2007/041307-infosys-revenues-to-reach-us4.html) Source: http://www.chinabpo.org.cn/pub/htm/engcon/engnews/1458-31@2006-09-18.html Source: http://www.forbes.com/markets/2007/07/06/india-china-outsourcing-markets-econ-cx_rd_0705markets5.html

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