Indian companies in the Information Technology services sector have been steadily increasing their share in global IT outsourcing.
About $116bn-worth of IT contracts is going to be up for renewal in 2017.
With growing trend towards splitting up bigger deals, the companies could look forward to more gains in the next year.
The data is compiled by IT advisory firm, Information Services Group (ISG).
Indian Information Technology services companies
Top five Indian IT companies account for $20 billion
According to ISG's data, of the $116 billion, the top five Indian IT service providers account nearly for $20 billion.
The top five US firms (IBM, Accenture, CSC, HP, Xerox) account for $29 billion.
The biggest four European companies (Capgemini, Atos, BT, T-Systems) account for $17 billion.
The remaining is divided among other smaller Indian and global IT service providers.
Trends than can change the way of contract distribution
Two new trends can change the way of distribution of contracts.
Customers now split larger contracts ($1bn-range) into smaller deals.
Indian firms have been traditionally weak in large deal space, but the splits could be an advantage for them.
The second trend is the growing digital scope of deals; cloud, analytics, automation are key to IT contracts, which also reduce the total contract value.
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ISG Head Dinesh Goel's statement
"While the net impact of this trend (digital scope) may not be accurately estimated, we expect this would result in ACV (average contract value) drop of 20-30% depending on the nature of deals and possibility of inclusion of disruptive solutions like cloud and automation."
Indian IT companies' share in the global sourcing market
According to ISG, Indian IT services' gains would greatly depend on how well they adapt to the new digital world in compared to their global peers.
According to NASSCOM, Indian IT companies' share in the global sourcing market steadily increased to 56% in 2015 from 45% in 2009.
The global sourcing market increased 9% to $234-239 billion in 2015 from $215-221 billion in 2014.
Incumbent service providers
47% of the times, incumbent service providers lose the entire scope of work, and 32% of the times, the incumbent loses noticeable scope of deal. Goel said, "It becomes increasingly important for incumbents to reconsider their approach to retaining and growing their key accounts effectively."
Indian IT service companies' contracts
TCS's $500mn-worth contract with the UK-based life insurance fund consolidator 'The Phoenix Group' is going to be up for renewal in 2017.
Dutch mobile company Royal KPN and Aircel's $500mn deal each with Tech Mahindra and Wipro is going through a competitive bidding process.
13 Jan 2017
Infosys, TCS profits up in Q3
TCS registered a 0.3% rise in dollar revenue ($4.39 billion) while its net profit rose 1.6% to touch the $1 billion in Q3 of the current fiscal.
Meanwhile, India's second largest software firm Infosys reported a 7% growth in its consolidated net profit (Rs.3,708 crore) and an 8.6% rise in its consolidated revenues (Rs.17,273 crore) in the third quarter.
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