Top Ten IT Companies of India 2008-2009

1) Tata Consultancy Services : Tata group-owned Tata Consultancy Services (TCS) is the country's no. 1 IT company. During the year 2008-09, the company clocked Rs 25,894 crore in revenues.

Like all its peers the company too was hit by slowdown pangs. The turmoil in the BFSI sector in the US hurt the company which has a huge exposure to the segment. It also had to write off some dues of Lehman Brothers and was hit by the bankruptcy of auto major General Motors and telecom giant Nortel.

However, the company made impressible gains in other sectors like manufacturing, healthcare and engineering services to grow by 22% year on year. Geographically, the company continued its expansion in Latin America, setting up its third delivery centre in Mexico. On acquisitions front, the company bought Citibank's BPO unit for $505 million.

The company which got 8% of its revenues from the domestic segment expanded its focus beyond government. It provided backend connectivity to Rajathan Royal's team during IPL season 2.

2) Wipro : At no. 2 is Bangalore-based Wipro. The company beat its larger rivals TCS and Infosys to post a revenue growth of 41% (excluding BPO). The company recorded revenues of Rs 23,882 crore during the fiscal 2008-09 which saw its two divisions Wipro Technologies and Wipro Infotech synergies better for total outsourcing deals.

The company fought the likes of IBM and HP on the domestic turf to wrestle Aircel, Wnitech Wireless and ESIC deals. The company's Middles East operations grew by over 280%.

The restructuring at the top level was followed by the departure of several senior executives of the company. The company was also hit by the bankruptcy of Lehman Brothers and General Motors. The news that it Wipro has been barred by World Bank also created a small flutter.

3) Infosys : The third biggest IT company in India is Infosys with 2008-09 revenues of Rs 20,392 crore. The company closed the year with a 31% growth, with Europe and the US contributing 90% of the total revenues.

The turmoil in the US economy hit the company which had little focus on the domestic market. Only 1% of the company's revenues came from the domestic market.

However, the recession in the US seems to have wisened the company who is now focusing aggressively on the domestic market. Bharti Airtel and SBI were two of its big wins in the domestic market during the year.

Geographically, the company also expanded in Central Europe, Latin America and South America. The company also opened a new development centre in Mexico.

Last quarter saw the company laying off almost 1500 people on the grounds of non-performance.

4) HP India : The fourth largest IT company is Hewlett Packard India. Slowdown seems to have hurt the company badly, which grew by mere 2% in the fiscal 2008-09.

However, the company's slow growth was not company wide. While TSG grew by a good 33%, largely led by services and enterprise software, the PSG and IPG divisions saw a big hit in their numbers due to the general hit in the consumer sentiment.

Parent company's acquisition of EDS helped solidify HP's services business in the Indian market, with 18% of the revenues coming from the domestic segment.

The company bagged several new clients including Indian Railways, Tata Motors, Durgapur Steel and Raymonds. HP India continued to be the no. 1 vendor in notebooks and desktops across all four quarters according to IDC.

5) IBM India : At no. 5 is IBM India. With revenues of Rs 12,048 crore, the company grew by a decent 36% during the fiscal 2008-09 (excluding BPO business). The FY ‘09 saw the share of domestic revenue in the overall pie increase to 48%, from the previous year's 42%.

The company's big wins included SAP implementation deals from Torrent Pharma and Star India. It also won some key deals from Bharti Retail, Bharat Bijlee, LANCO Infratech, Cavincare, HDFC Bank, Max NewYork Life and Sun Direct.

The company was hit by its aggressive focus on the retail and real estate segments, as the two sectors are among the worst hit sectors.

The company's image as a hire and fire employer too is said to be there due to the layoffs it announced early last year.

6) Cognizant Technology Services : The sixth largest IT company in India is Cognizant Technology Services. Surprisingly, the company which gets four-fifth of its revenues from the US and half of this from the BFSI sector grew by almost 49% during the fiscal year 2008-09. With this the company recorded highest growth among all IT companies in the country for the third year in a row.

At a time when almost all companies announced layoffs, Cognizant claimed to have added 10% to its workforce between April ‘08 to March ‘09.

Cognizant also increased its penetration in the non-US markets, growing by over 71% in Europe and 142% in APAC. The company also made some inroads into the German market. The year also marked Cognizant’s entry into the domestic market.

7) Ingram Micro : IT distributor Ingram Micro is the seventh biggest IT company in the country. The year saw slowdown straining the company's revenues. The worst hit was the company's non-IT business, which includes mobiles and consumer electronics.

Incidentally, the company witnessed healthy growth in the first half of fiscal 2008-09, however, the poor showing in the second half wiped out the gains of the first half.

Computing systems including, notebooks, servers and desktops continue to be the biggest revenue generator for the company. In the computing segment, Ingram got maximum revenue from HP products followed by Acer. Lenovo's declining fortunes continue to trouble Ingram.

While printers and other peripherals did show slowdown pangs, the company's component business did well showing impressive performance from Intel.

8) HCL Technologies : At no. 8 is HCL Technologies. The company grew by 41% to clock revenues of Rs 8,764 crore. The biggest highlight of the fiscal 2008-09 for the company was its acquisition of UK-based Axon for which it pipped rival Infosys technologies.

The $658 million Axon buy was the biggest acquisition in the history of Indian IT. The company said that the acquisition was the part of its Blue Ocean strategy, which aims to expand in high-potential areas with low competition.

The year saw the company expanding its footprint in the APAC market. Some big deals included, UTI, MTV Networks, Misys and Serena Software.

The company's two major clients were among the worst hit BFSI companies.

9) HCL Infosystems : The ninth largest Indian IT company is HCL Infosystems. With Rs 8,089 crore revenues, the company grew by almost 60% during the fiscal 2008-09 largely riding on its services business.

BFSI segment showed the most activity, with the company acquiring a cooperative banking software vendor NTPL. The company bagged orders from BSNL in the telecom space.

The company ventured into physical security space launching Safe State to offer security and surveillance solutions. Some big launches of the year include mobile POS solutions and high-speed Infiniti challenger series workstations.

However, the company's marketshare in the PC/laptop market continues to lag at a lowly 11-13%.

10) Redington India : The tenth largest IT company in India is Redington. Slowdown hit the company badly during the fiscal 2008-09, with growth slipping to 5% from 25% in the previous year.

The company's revenues during the year stood at Rs 6,576 crore. Peripheral and systems were the biggest spoilers for the company during the year, with both businesses shrinking.

On the positive side, the company added nine new vendors including some niche principals like Philips LCD and Belkin accessories. Focusing on large deals and guarding it cash reserves helped the company.