Tuesday, November 10, 2009

Top 5 IT MNCs in India

Top 5 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.

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