Indian IT companies have $116 billion worth opportunity waiting in 2017

Courtesy Gadgets Now

BENGALURU: Indian IT services companies have been steadily increasing their share in global IT outsourcing. Now with $116 billion worth of IT contracts coming up for renewal in 2017 and the growing trend towards splitting up large deals, they can look forward to some more gains in the coming year.

Of the $116 billion, the top five Indian IT services providers account for $20 billion, the big five American companies (IBM, Accenture, CSC, HP , Xerox) account for $29 billion, and the top four European firms (Capgemini, Atos, BT, T-Systems) account for $17 billion. The remaining is split among a host of other smaller global and Indian providers, according to data from IT advisory firm ISG.

Two new trends have the potential to change the way the contracts have till now been distributed. Customers are tending to split large contracts -those in the $1-billion range -into smaller deals. Indian companies have traditionally been weak in the large contract space. So, any split should work to their advantage. The other trend is the increasing digital scope of deals -cloud, analytics and automation are becoming key parts of IT contracts coming up for renegotiation. This also reduces the total contract value (TCV) available on these deals.

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