Thursday, August 14, 2008

Top 10 IT MNCs in India

Top 10 IT MNCs in India

Indian IT is no longer about just being a global talent base. The country is also emerging fast as a key market for both Indian and global technology companies. Thanks to a growing domestic IT market, even global companies are making rapid inroads in the Indian market.
In fact, IT MNCs outnumbered Desi tech firms in a recent survey done by Dataquest magazine on India's Top 20 IT companies in India.
What's more, it is not just the biggies like Microsoft, HP, IBM and Oracle battling it out with the Indian IT companies for top slots in the rankings. The swelling domestic IT market is attracting many more global tech firms to India and they are giving tough competition to the home companies on their turf.
Another key finding of the survey is that India is no longer just a key R&D location. The country is also fast gaining importance in terms of revenue generation. India revenues are rising and becoming noticeable in the global revenues of these companies.
Here's a peek into the top 10 tech MNCs in India and their business.

Hewlett-Packard

The first MNC in the list is HP India. Part of world's No. 1 PC maker, the company today has one of the widest portfolio of products and services. Eyeing services market, the global company recently made a $13.2 billion acquisition of technology services provider Electronic Data Systems Corp.
Buying EDS would give HP more tools to challenge IBM in the lucrative technology services field. The estimated $550 billion market for technology services has long been dominated by IBM Corp, which has about a 10 per cent share. HP ranks a distant fifth with a 3 per cent market share, based on its $16.6 billion in technology services revenue in its last fiscal year.
In February 2008 the company signed a seven-year outsourcing contract with Unilever for the management of Unilever's technology infrastructure in the Americas, Asia, Africa, Turkey and Middle East.
In India, the company bagged 10 new outsourcing contracts, including Andhra Bank, United Bank of India and United India insurance. In the printer segment, company's Print 2.0 strategy focuses on Web-based printing. It also launched its online photo service snap fish.
With the announcement of 3G policy, HP is planning to talk to Indian mobile operators for a tie-up to offer 3G laptops. HP already has tie-ups with various service providers in different countries. For instance, in the US it’s AT&T, Sprint & Verizon, in Australia HP has tied up with Vodafone, in UK its Orange, Vodafone and T-Mobile.

IBM

In the year 2007 the revenues of the Indian arm of Big Blue grew maximum among major markets including China (in dollar terms). The overall headcount saw a jump of 20,000. The major clients included, Vodafone, Indian Railways and Ministry of Social Welfare.
It also won a $45mn services contract from CBDT. The agenda of the 5-year deal is to completely modernise CBDT's infrastructure. The company recently opened news centers in Noida and Pune.
The company under went restructuring into four divisions Enterprise Systems, Business Systems, Industry Systems and Volume Systems. Renewing its focus on the SMB segment, the company is restructuring its focus from a product-centric one to a client-centric business model.
The transformation will provide IBM customers with a single face of IBM to deal with. The company also boosted its direct presence from 14 locations to 27. As part of the second phase of its Project Big Green (PBG 2.0) in India, IBM introduced new products and services to help enterprises build ‘greener’ technology infrastructure.
With PBG 2.0, the company is introducing modular, energy-efficient data centre designs that can reduce energy consumption by about 50 per cent. Globally, IBM relies on emerging markets for two thirds of its revenue. Five key overseas growth markets for IBM include China, India, Brazil, Australia and South Korea -- with each contributing more than $1 billion in revenue annually.

Ingram Micro

Next on the list is Ingram Micro Inc, the world's largest technology distributor and a leading technology sales, marketing and logistics company.
Like HP India, the company gets a major part of its revenues from the sale of computer systems and peripherals. The company which merged with Tech pacific globally saw a strong growth in PC and enterprise business last year.
The company also launched its own brand V7 focusing largely on accessories segment. The company also added Autodesk and Adobe to its software portfolio and Asus to hardware. It also became direct distributor of Toshiba laptops. It also added several vendors like Hitachi, NetApp, Tandberg and Netgear.
Internationally, Ingram offers a broad array of solutions and services to approximately 170,000 resellers. Through Ingram Micro Logistics, the company provides customisable services for order management and fulfillment, contract manufacturing, contract warehousing, product procurement, product pack out and cartonisation, reverse logistics, transportation management, customer care, credit and collection management services and other value chain services.

Cisco

The networking giant too is making rapid strides in the Indian market. It claims that the company came to India not just because of cost arbitrage, but more for innovation, growth and talent.
The company which witnessed the exit of a series of top managers in 2006-07, saw some stability at the top last year. The company's total India sales stood at Rs 5370 crore, with 35 per cent coming from Switches.
The company also witnessed high growth in the areas of unified communications and network storage. Earlier this year, Cisco India restructured its India operations on the lines of a technology services company. The company said that the change reflects Cisco's evolution from being mainly an equipment vendor to a combined product-service solutions provider.
The restructuring is also expected to create more jobs and create further leadership positions. The company plans to take its headcount to 10,000 in the next five years. Cisco's new globalisation centre east campus has largest campus data centre outside US.
The R&D operation of Cisco India currently has around 5,000 people including its India technology partners like Wipro. It also formed joint go-to-market alliances with Wipro and Satyam Computers with the potential generating substantial revenues in the areas of networking and healthcare.

Oracle

The IT MNC has been in India for over 15 years. In fact, it was among the first few multinational software companies to set up operations in India.
Beginning with a distributorship through Tata Consultancy Services in 1987, the company established direct operations with a liaison office in 1991, and in 1993 formed Oracle India Private Ltd, a wholly-owned subsidiary of Oracle Corp, focused on the sales and marketing of Oracle software in India.
Last year saw Oracle India look beyond its conventional ERP, and focus more on niche apps like CRM, logistics management and HCM. The company continues to lead the database market with 63 per cent marketshare.
The company overtook SAP in CRM and stood at no. 3, behind Avaya and ASPECT software. The company has seven development centres including an Asian R&D centre, a partner solution centre, an egov centre, a retail CCoE and three GDCs at Bangalore, Hyderbad and Noida.
Last year, company saw attrition at top level, with several senior managers joining completion like IBM, Microsoft and SAP.

Intel

The chip giant Intel earned over 60 per cent of its last year's revenues from the APAC market, including Japan. The company seems to have benefited from the expanding laptop market. It earned $160 per laptop versus $85 it made per desktop.
The company also launched its low-cost, low-power Atom processors and quad-core processors. Intel sees a huge market for UMPCs and other small form factor Internet devices; calling its own version of such a device as 'Netbook', a low-cost PC that would cost in the region of $250.
In addition, Intel has also announced the "Centrino Atom" processor technology aimed specially at mobile Internet devices. This was formerly code-named Menlow.
Eyeing the SMB segment, it introduced an online storefront and business solution Web portal designed for small and medium-sized businesses (SMBs). The Intel Business Exchange (Intel BX) brings together offerings such as bundled software and hardware, standalone business applications and services.

Accenture

Accenture is one tech MNC which has more employees in India than US. The management consulting and IT services provider recently announced that it is planning to add another 28,000 employees in the current financial year.
Globally, the company plans to make 60,000 gross additions to its workforce by August and will be consistently investing in training manpower. The Bermuda-based company was formerly a part of Andersen Consulting, till the company split off from defunct accounting firm Arthur Andersen in 1989.
Formerly Andersen Consulting, the company split off from defunct accounting firm Arthur Andersen in 1989. Accenture delivery centers for technology and business process outsourcing in India were awarded the BSI BS 25999-2:2007 certification for business continuity from British Standards Institute (BSI) recently.
The company operates 45 delivery centres across five continents with more than 75,000 people. Its India delivery centres are located in Bangalore, Chennai, Hyderabad, Mumbai, Pune and Gurgaon in National Capital Region of Delhi.
It is currently servicing 350 clients, including many of the Fortune 100 companies from India. The company's BPO unit recently said that it is witnessing pricing pressure for certain deals, especially the low-end transactional work.

Microsoft

The Indian subsidiary of software major Microsoft Corp recently announced the appointment of ex-Dell chief Rajan Anandan as its MD. The company grew 26 per cent claimed that launched largest Microsoft Office Sharepoint at TCS.
The company also announced changes in software licencing, which included option of staggered payment for software purchases. The company partnered 14 states and now boasts of over 300 e-gov apps running on Windows. The drop in piracy rates also boosted company's revenue.
The company recently announced the Release to Manufacture (RTM) of SQL Server 2008, the latest version of its database management offering. Microsoft India has also been in news for all the wrong reasons recently, the company which got a new MD last week saw a series of senior-level resignations including its MD, Neelam Dhawan, who quit Microsoft to join HP.
The company was also issued a show-cause notice for non-payment of service tax worth Rs 127 crore. The notice has been issued for non-payment of service tax on `marketing and user support services' carried out by Microsoft India for Microsoft Singapore.

SAP

SAP India was recently termed as 'Jewel in the Crown' of SAP worldwide. SAP India posted 67 per cent growth in the software licence revenue in the first quarter of 2008. The company's small and mid-size revenue rose by 43 per cent, while consulting grew by 34 per cent and education marked 100 per cent growth.
The rise was marked by software licence revenue and customer acquisitions that made SAP India the fastest growing region within SAP. The growth came across various verticals including utilities, Banking Financial Services and Insurance (BFSI), automotive, and retail.
While SAP added Delphi TVS, Easun Reyrolle, and IFB Industries as its new customers, companies such as Moser Baer, Sasken Communications, and Greaves Cotton moved to SAP from legacy platform.
SAP success story also touched SAP Labs. SAP Lab started operations in the year 2000 with 100 people and has been growing by almost 50 per cent every year until 2007, when it grew about 30 per cent. Lab's present headcount stands at approximately 3500 people.
On the down side, the lack of database applications continues to give its arch rival, Oracle, lead in vertical specific offerings. Also, Oracle last year inched past SAP in the CRM market.

Dell

World's second largest computer maker made its India entry some eight years ago. The company which is bullish on India market claims to be seeing rising demand from consumer, small and medium business, government, financial services and education sectors.
The Texas-based company, which has a plant in Tamil Nadu achieved a revenue of Rs 3,000 crore building on strong volume growth in 2007. The company's Sriperumbudur plant has brought down the shipping time from three weeks to one week.
The company is at third position in the market with a 7.6 per cent market share and claims to be number one in large corporate segments. It recently launched low-cost personal computers customised for the Indian market.
Dell has also announced plans to adopt channel sales model to enhance its presence in the Indian market. The vendor plans to leverage the growing opportunities in the SMB segment.
On the down side, the company still has to gain visibility on the consumer sales front.

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