Indian based IT service providers grow

The top five Indian based IT service providers are continuing to grow.

According to a report by Gartner the companies grew 23.8 percent in 2011, compared to the 7.7 percent of growth for the whole global market.

TCS came out on top with a 2011 market share of 1.1 percent, saw a 2010-2011 growth rate of 29.4 percent and a revenue of $9031 million.

There were some changes at the top – with Cognizant triumphing over Wipro to become the third-largest Indian IT services provider. The company also saw the highest growth rate of 33.3 percent among the top five providers in 2011.

Infosys came in at second place, raking in a 2011 revenue of $6,279.  This contributed to a growth rate of 17.8 percent and a market share of 0.7 percent. However, it hasn’t all been bells and whistles for the company, which has been fraught with allegations of fake visas and low pay.

Last month whistleblower Jay Palmer, who previously worked as an IT consultant for the company, claimed that the service provider smuggled Indian workers into the US. He also claimed that the company had fiddled business visa rules requiring foreign workers to be paid US market rate, and paid them minimal wages.

Earlier this month, the company was dealt a further blow when an anonymous ex worker gave details on how the firm bypassed US visa laws and discriminated against American staff.

However, this hasn’t put companies off using the firm or the competition, with Gartner claiming that the top five service providers have continuously chipped away market share from the large multinational corporation providers.

It said that this was a result of increasingly winning large outsourcing deals, from Fortune 1000 companies, which reached roughly $100 million in the past five years.

Greatly expanding service portfolios and cross selling products such as infrastructure services, business process outsourcing (BPO) services, cloud and analytics services, has also given these companies an edge, Gartner said.