IT firms looking for more domestic share

Indian software and IT services market is valued at around Rs 57,200 crore

 

With recession in the US, Europe and Japan forcing overseas clients to pare technology budgets, Indian IT companies are scrambling to raise their share of the Indian software and IT services market, which industry body Nasscom values at around Rs 57,200 crore.

 

Mumbai-based TCS and Bangalore-based Infosys, India's largest and second largest IT service exporters, respectively, have set themselves the target of earning $1 billion, or around Rs 5,000 crore, in revenue from the domestic market in the next three to four years. Wipro wants to raise its India focus, as does mid-sized firm MindTree Ltd.

 

With sectors such as government, energy and utilities, telecom, banking and finance stepping up their IT spending, the domestic market has become attractive for firms that have until now focused beyond Indian borders. Customers in the US and Europe have traditionally made up as much as 80% of revenue earned by Indian exporters of software and related services.

 

According to a late 2008 report by research firm Gartner Inc., the Indian IT software and services segment, excluding business process outsourcing, is expected to grow at an annual pace of almost 20% to touch $13.2 billion by 2012.

 

TCS earns around $500 million (Rs 2,500 crore), or nearly 8% of its total revenue, from Indian clients. "We have a base of key clients and solutions portfolio. We have made investments and have people, business and clients. We will accelerate all of this," a TCS spokesperson said in an emailed response.

 

Source: Mint