New Jersey-based Cognizant Technology Solutions (CTS) has displaced Infosys to become the second-largest Indian IT services provider by revenues according to global technology research and advisory company Gartner. Cognizant is considered to be an India IT firm because majority of its employees are based in India.
"Cognizant experienced the highest growth rate among the top five providers with an increase of 20.1 per cent in 2012," said Arup Roy, research director at Gartner.
Cognizant, which was ranked 28 globally in 2011, moved to the 23rd position in 2012 with revenues of $7,053 million. Infosys, which was ranked 27 globally in 2011, also improved its ranking to 26, with revenues of $6,691 million.
Tata Consultancy Services remained the highest ranked Indian IT firm globally. It was ranked 16, the same as in 2011, with revenues of $10,888 million.
"TCS closed in on the top 10 worldwide market share leader, with less than $1.5 billion separating it from the 10th ranked provider, Hitachi," Gartner said in a press statement.
Azim Premji-promoted Wipro retained its global ranking of 31 (revenues of $5,737 million), while HCL Tech was placed 41, jumping six places, with revenues of $3,916 million.
However, the growth decelerated for both industry groups, from 21.8 per cent and 7.7 per cent, in 2011. This is the first time that the top 10 India-based IT services providers' growth slowed considerably in the last five years, Gartner said.
The growth rate of India-based providers has been slowing for some years, but in 2012 this trend was more pronounced, Gartner said.
The global top 10 providers are larger in their base revenue and more diversified than the India-based providers.
Gains in IT stocks on Tuesday were in line with the broader Sensex. TCS gained 1.12 per cent to close at Rs 1,514.40, while Infosys shares closed unchanged at Rs 2,366.35. HCL Tech and Wipro rose 0.4 per cent 0.2 per cent respectively.