The Hindu : Business : TCS tops list with $1 b earnings

Online edition of India's National Newspaper
Wednesday, Jun 23, 2004

Business

Business

TCS tops list with $1 b earnings

By Shanthi Kannan

CHENNAI, JUNE 22. The Indian companies earned revenues of $7.5 billion in IT outsourcing. Of which the top six realised revenues of $3.2 billion in 2003. Tata Consultancy Services topped the list of external service providers with revenues of $1.02 billion as on March 31, 2003 followed by Infosys Technologies ($754 million), Wipro Technologies ($690 million), Satyam Computers ($459 million), HCL Technologies ($ 333 million) and Patni Computer Systems ($188 million). Likewise companies based in the U.S. with significant revenues from Indian resources are: Covansys ($382 million as on December 31, 2002), Cognizant Technology Solutions ($ 230 million) and Syntel ($164 million).

Many MNCs are making major moves into offshore outsourcing and this raises serious questions about how many `pure-play' Indian providers can survive their pressure, Gartner says. The explosive growth in the Indian offshore BPO industry in the last two years has begun to expose some newer Indian outsourcers' fundamental weaknesses in managing this growth and particularly the demands of a rapidly expanding workforce.

Established information technology service providers such as Infosys, Wipro, TCS and HCL Technologies have been able to develop their skills in these areas over many years. For the new players, human resources issues like attrition and security are emerging as serious management challenges.

Gartner has recommended that enterprises considering pure-play offshore BPO providers must recognise that offshore outsourcing requires a long-term commitment from both parties involved. As the offshore BPO market accelerates and consolidates, size and management experience will become critical decision factors.

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