Have been reading a lot about how the incumbents are becoming masters of the GDM (Global Delivery Model), well ...Business World India has an article on how the Multinational Players are eating into the market of the Indian Players.

Four years ago, multinational players accounted for 36 per cent of India's IT-ITES exports. By March 2005, global IT firms had come to account for 46 per cent of the country's IT-ITES exports. As Indian IT exports race towards $60 billion by 2010, will India's homegrown players lose the field to MNCs?
In 2001-02, India's IT services exports stood at $6.2 billion. Out of this, the top five Indian IT firms, categorised by Nasscom as Tier-I players, accounted for 32 per cent. Tier-II players (companies with revenues between Rs 100 crore and Rs 1,000 crore) accounted for 35 per cent. MNC players constituted 27 per cent. The balance was made up by niche and small and medium companies. By the end of 2004-05, when India's IT services export revenues stood at $12 billion, MNCs had grown their market share to 36 per cent. This year, MNCs are pegged to corner more than 40 per cent of India's IT services export revenues.

who has conceded marketshare to the global IT firms? India's Tier-I firms - Tata Consultancy Services (TCS), Infosys Technologies, Wipro, Satyam Computer and HCL - have definitely not been slipping. In fact, their market share has increased from 32 per cent in 2001-2002 to well over 45 per cent at the close of 2004-05. The carnage has taken place in the Tier-II segment. From a marketshare of 35 per cent in 2001-02, Tier-II companies had slipped to 16 per cent in 2003-04. At the close of 2004-05, the Tier-II segment had somewhat recovered and gained marketshare to 20 per cent. But that had come on the back of revenue-buying acquisitions. The current financial year has again seen a fair bit of turmoil in the Tier-II segment.

Source: 1Prashanth RaiTag(s):India, IT+Services