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Indian IT firms expect decline in annual growth

Posted: 30 Jul 2008 ?? ?Print Version ?Bookmark and Share

Keywords:decline? IT? growth? economy?

After three years of stability, India's top 20 IT providers are reporting sharp decrease in annual growth rates as the global economy slows down.

Growth rates for the previous months were 24 percent, down from 41 percent during the same period a year ago.

Leading IT services exporters also reported slowing annual growth that slipped 16 percent to 29 percent year-on-year. The companies were hurt primarily by currency fluctuations, according to a survey by the market researcher CyberMedia.

Most Indian service exporters are paid in U.S. dollars. When the dollar falls in value against the Indian rupee, net sales drop. Still, operating margins held up under the pressure. "Currency fluctuations resulted in an over 10-percent hit right away in rupee earnings for exporters," said Pradeep Gupta, publisher, CyberMedia.

The survey said Tata Consultancy Services remained the top Indian software services exporter. It was followed by Infosys Technologies and Wipro Ltd.

Hewlett-Packard led overseas IT services companies in the country last year with over $3 billion in sales, followed by Ingram Micro Inc. with over $2 billion and Cisco Systems with $1.25 billion. Intel Corp.'s sales in India were just under $1 billion, according to the survey.

- K.C. Krishnadas
EE Times





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