How Europe trumped US for Indian IT companies | In the News

Posted On November 13, 2017

For the longest time, US was the largest as well as the most dominant market for the $150-billion software services industry. While it still contributes to two-thirds of the sector’s revenues, over the past few quarters, it is countries in Europe – especially in Continental Europe – that are bringing the maximum growth, defying the concerns around Brexit. Under a lot of pressure, US – especially in the banking and financial services (BFSI) industry –growth rates have reduced to low, single digits for top IT companies.

Meanwhile, Europe – traditionally considered shy of outsourcing (except for UK) – is growing at a much faster pace. The percentage share of revenues contributed by the US has also been steadily coming down.

In the case of Infosys, the number is down from 61.5% to 60.6% during the same period, while for Wipro, it has fallen from 54.8% to 53.6%. Peter Bendor-Samuel, the CEO of market consultancy firm Everest Group, said the EU economy has lagged the US and is now accelerating.

Read more in The Economic Times

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