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HCL overtakes Wipro to become the third largest IT company in India

Amit Agrahari by Amit Agrahari
12 May 2019
in Business
HCL overtakes Wipro to become the third largest IT company in India

(PC: Zee News)

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Information Technology (IT) is one of the largest job providers in the organized job sector in India. The 167 billion dollar IT industry is the backbone of the Indian economy and its exports sector. Indian IT companies provide software services across the globe and most of the foreign exchange in the country comes from these companies. In the last few years, the IT sector has passed through a rough ride and few companies came as winner while the others are losing. The Noida based HCL Technologies has taken over the Azim Premji led Wipro to become the third largest IT Company in the country. The revenue of the company grew by double-digit and reached 8.63 billion dollars compared to 8.12 billion dollars of Wipro. The growth of Wipro was a mere 3.6 percent.

“HCLT has delivered a truly blockbuster performance with double-digit constant currency revenue growth of 11.8 per cent, which outperformed the high end of our guidance. We once again, for the third time this year, set a new bookings’ record,” said C Vijayakumar, president and CEO at HCL Tech.“We aspire to reach the $10 billion revenue milestone this fiscal year,” he added. In the last quarter of this fiscal year, HCL bagged 17 deals and added two customers in 100 million dollars category. 

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Another IT company TCS is set to touch a milestone this year by becoming the third largest IT Company in the world. IBM, the US-based Information Technology giant is the largest company in the sector with revenue of 79.59 billion dollars followed by Ireland based Accenture which did a business of 39.57 billion dollars last year. TCS will overtake DXC Technology Co. to become third largest software service provider with 20.91 billion dollar revenue. The company generated 15.52 billion dollars in the first three quarters compared to 15.47 billion dollars generated by DXC. The last quarter results of DXC are expected to remain subdued in comparison and therefore TCS will be crowned as the third largest software services provider. Infosys, the second largest IT Company in terms of revenue witnessed 9 percent growth to touch 11.8 billion dollars.

The growth of the IT sector has slowed down in the initial years of the Modi government but picked up last year. The growth of IT has picked due to various reasons. The first reason is the general push for digitization across the world, especially in developing economies including India. The increased expenditure on digital technology by companies and governments has helped outsourcing companies to bag more projects. The second reason being that companies do not want to hire people for technological work instead the management chooses to outsource these jobs. The third reason is the increasing importance of data analytics in running businesses. Surveys found that most of the Fortune 1000 companies now use data analytics offered by IT vendors for better management.

Indian companies bagged many big projects in the last few years, therefore, they need people to complete these projects. Mumbai based TCS has won three mega deals since December last year, the combined revenue from these projects would be around 5.6 billion dollars. Bangalore based Wipro won its largest contract worth 1.6 billion dollars last week. TCS is expected to grow above 10 percent this fiscal year. Its growth was at 8.6 percent over the last fiscal year with total revenue of 19.09 billion dollars. Most of the new projects were in new segments like data analysis, intellectual property and according to analysts, the transitions phase was also one of the reasons behind the recruitment growth.

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