An Indian Civilizational Perspective

Unprecedented Growth seen at Indian Software Firms

The growth in the Indian software sector is simply spectacular. And no-other companies are doing as well as the top three Indian. One reason is that others – say like CapGemini etc – have not figured out t how to best use the teams in India. They might "buy" the employees but cannot keep them motivated! One number that sounds amazing is that the collective Net Profits of Top Five Software Indian firms is now over $3 billion!

100,000. That’s the number of new jobs that India’s top five software companies plan to add this fiscal year, riding a boom in outsourcing that’s fattened profits. That’s on top of a record 76,500 new employees who joined these companies last year.

The figures underscore how rapidly U.S. and other Western companies are shifting work to low-cost India, where outsourcing is no longer limited to call centers or back office work such as billing and salary records.

Companies like Tata Consultancy Services Ltd. and Infosys Technologies Ltd. now have thousands of engineers developing software to improve corporate productivity and manage information technology infrastructure.

And despite concerns that rising salaries, a possible slowdown in the U.S. economy and the rupee’s strength against the dollar would hurt business, the latest earnings figures – released over the past two weeks – show that profits are surging.

Net profit for the top five outsourcing companies – Tata Consultancy, Infosys, Wipro Ltd., Satyam Computer Services Ltd. and HCL Technologies Ltd., ranked in that order – grew to a collective $3 billion for the fiscal year through March, up 47 percent.

Sales, meanwhile, jumped 41 percent to a combined $13.6 billion.

And the top four software companies won 713 new clients last year. A figure from HCL Technologies was not available.

"We are seeing robust growth," Infosys Chief Executive Nandan Nilekani told reporters when his company reported a 70 percent year-on-year surge in profits during the January-March quarter.

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