Top 5 IT companies in India beat recession
By Natraj Muthukrishnan on 17 June, 2010, 11:16 am
The real winners are the ones who do not perish in tough times and come out victorious in all odd circumstances. Three cheers to the Indian IT companies TCS,Infy,Wipro,HCL and Cognizant who have done extremely well in the recent recession and come out victorious.
The latest Forrester Research report says that these five firms — TCS, Infosys, Wipro, HCL and Cognizant — actually increased their profitability in the past 12 months despite offering 4-6% discounts to their clients in a tough economy. These firms have emerged out of the recession stronger and smarter in the path of growth now.
The report says that : To beat the recession, most Indian firms took serious cost-cutting steps such as cuts in salary and variable pay, curbing spend on marketing and long-term R&D and overheads, and even downsizing in a few cases. In addition, as attrition was at a record low, their recruitment costs and annual raises were flat or reduced by 5-7%. Such systematic budget cuts, coupled with tight approval mechanisms, helped these companies cut costs virtually by double-digit percentages.
While there are cuts in spending across companies in North America and Europe, the Indian IT industry anticipates growth in 2010 and 2011. The top five anticipate double-digit growth in 2011 and possibly higher than that, with several of them even crossing 20%. Each firm has strategies in place to prosper post recession.
Cognizant has plans on approaching the clients in an entirely new dimension with increased expertise in terms of domain while HCL has charted key initiatives like “employee first,” which empowers its employees and assures them of internal support while they focus on delivering client benefits.Infosys is focusing on extending its GDM, improving efficiency, and harnessing new engagement models while TCS wants to build on its current leadership position and leverage its large number of existing client relationships, wide range of service lines, globally distributed delivery centres, and strong presence in emerging markets. Wipro is focusing on technology, delivery innovation, and productivity to help clients save more.
All this is possible just because of the way these companies managed to come out of the recession. Hope the forward march by these continues. Way to go!!
Awesome. Nice to see our companies riding their boats strong even in rough waves. Way to go.