Indian IT Firms beat MNCs in major deals bagging contracts over $1.5 Billion worth

[Chanakya's_Chant]

Indian IT cos beat MNCs in major deals​

Some of the significant wins include Wipro's $100 million IT infrastructure management contract from Netherlands-based media company Sanoma and Infosys' $100 million deal from Microsoft.​

Indian IT firms are continuing to gain global market share, trumping MNC rivals in large IT outsourcing contracts.

Almost half of 26 large IT outsourcing deals in June were won by India-centric IT service providers. Some of the significant wins include Wipro's $100 million IT infrastructure management contract from Netherlands-based media company Sanoma and Infosys' $100 million deal from Microsoft, as per data compiled by US research firm HfS.

Large MNCs bagged the remaining 12 deals, and many of these too have sizeable offshoring components, especially those in the finance and accounting space and in application development & maintenance (ADM) deals won by global service providers such as Capgemini and Accenture, HfS said. Accenture won a S$26.5 million deal from the Singapore government, and French IT major Capgemini bagged a 30 million euro contract from Denmark-based industrial company Danfoss.

Even in May, Indian IT firms had some big wins, including HCL Technologies' $500-million contract from Pepsi and $400-million contract from DNB Bank, Norway, and Wipro's $400-million contract from Takeda Pharmaceutical, Japan.

The $118-billion Indian IT sector competes with MNCs like IBM, Accenture, and Capgemini. One study that looks at the top MNC and Indian IT firms shows that the Indian IT players have almost doubled their share in the group in the last five years, from 7.7% in the 2009 fiscal to 14.3% in the 2014 fiscal.

Many of the contracts in the past two months have come from Europe, indicating a growing appetite for offshoring in that continent.

Competitive and cost pressures look to be forcing a change in the continent, which in the past tended to be inward looking.

The April-June quarterly numbers of many Indian IT companies also show an increase in the proportion of revenues from Europe. "Nordic countries are active," said Pareekh Jain, principal analyst in HfS Research. "Out of the 26 deals, 11 either originated out of Europe or have a large European component.

In Europe, seven deals are from Nordic countries like Denmark, Sweden, Finland and Norway. Each of the four Nordic countries has witnessed at least one deal in June," he said. TCS, for instance, won a 5-year deal from Netherlands-based insurance major SNS Reaal recently .

Digital, and social, mobility, analytics and cloud (SMAC) are beginning to take centrestage in new deals. Out of the 26 deals, nine have a combination of digital and SMAC components. "IBM and Wipro are winning deals in IT cloud services. Out of the 26 deals, four were in the IT cloud services space. Out of the four IT cloud deals, IBM won three deals and Wipro won one," said Jain.

Traditionally, BFSI (banking, financial services & insurance) has made up a large chunk of IT outsourcing contracts, but manufacturing led the deal chart in June, with six contracts, followed by BFSI and public sector with five and four deals respectively.

Source:- Indian IT cos beat MNCs in major deals - The Times of India