The Ringside

"The Race to $10 Billion"

When I saw the cover of the latest Business Today (May 21, 2006) screaming "The Race to $10 Billion", I picked it up from the newstand rightaway.

The Business Today (BT) cover story stacks up the big three against each other in their growth to USD 10 Billion in revenues. BT predicts that the three can reach this milestone by 2010, or even sooner. But that’s saying something, because the combined revenue of Indian IT industry is expected to be USD 60 Billion in 2010, per NASSCOM-McKinsey assessment. This means that these three companies – Infosys, TCS and Wipro would account for around 50% of the revenue all by themselves!

TCS stands out for its ability to win big deals, and presence in multiple verticals. Infosys has a mega brand and superb marketing, great margins but lacks capability in a number of verticals. Wipro scores high on innovation and the knack for inorganic growth.

Methodology. The three firms were rated on a ten point scale on ten parameters by BT. Weights were assigned to each factor based on industry expert advice. A weighted average revealed the composite ranking.

The ten parameters are:

1. Financial Performance
2. Portfolio of offerings
3. Ability to attract and retain talent
4. Execution abilities
5. Quality of clients
6. Scalability
7. Vision
8. M&A Ability
9. Innovation
10. Systems and Processes

Result. Based on the total score BT concludes that TCS (9.29) is most likely to reach the target first, followed closely by Infosys (9.25). Wipro (9.085) comes in third.

posted by Aditya @ 5/12/2006 03:57:00 PM