A compilation of facts from Infosys, Wipro, Satyam
and Cognizant
Among the top tier Indian companies, Infosys
leads the race with the last three quarters
with $762M in revenues, followed by Wipro with
$673.77M and Satyam with $407.29M. Cognizant
for the same period had made $293.7M.
Going by current forecasts, Infosys and Wipro
will soon be double the size of Satyam and Cognizant.
Both Infosys and Wipro are tipped to cross the
$1B mark in fiscal 2004.
The North American region accounts for more
than 75% of revenues for most Indian IT services
companies. Cognizant is most exposed to the
US region with about 88% of revenues coming
from there
Companies have been actively trying to increase
share of European revenues by ramping up sales
and marketing in Europe as well as by hiring
locals
Most of Cognizant’s revenues (over 50%)
come from maintenance related work as compared
to others where only about 25% of revenues come
from maintenance.
Satyam is consciously increasing share of
package implementation in revenues, with over
20% of revenues from this sector. Infosys comes
in second with over 12% of revenues, however
in terms of the actual size of revenues there
is not much difference between Satyam and Infosys.
Trends
in share of revenues
Application Development
Decreasing revenue
share
Application Maintenance
Decreasing revenue share
Package Implementation
Increasing revenue share
The BFSI segment continues to be the leading
outsourcer of IT services. About 40% of Cognizant’s
revenues come from the BFSI segment, while on
the other hand, only a little over 14% of Wipro’s
revenues comes from BFSI.
The next scene for action is in the Telecom
sector. Wipro has a stronghold here with over
17% of revenues from this sector. Infosys is
close behind at over 15% of revenues –
the Telstra deal comes to mind
Cognizant has a clear focus in the healthcare
domain with over 20% of revenues coming from
this segment.
The figure represents
the outsourcing from each vertical segment and the leader among
the compared players in that segment
There is a focus on adding more high-value clients among
all the players. Cognizant terms it as strategic accounts
when a client has the potential to grow to anywhere between
$5M - $40M.
Satyam is heavily dependent on GE who is their top client
accounting for over 11% of revenues
All companies have an enviable rate of repeat business
– in fact all of them are in the 90% range for repeat
business
Offshore development is more profitable than onsite work
and this is supported by increasing offshore efforts. However,
still onsite revenues are higher than offshore revenues
and this trend is slowly changing.
All companies are on a hiring spree. However, they are
mostly targeting fresh college graduates.
Except Cognizant, all the other players have a BPO or
call center presence. Among them, Spectramind of Wipro has
a head start over the others.
