| Indian companies remained on high octane trajectories, with GDP growth in markets continuing to outpace the majority of Asian countries except China the region. There was political rhetoric directed at China's currency policy and India's outsourcing industry, but it did not dramatically impact 2004 performance. The mean revenue growth of all Indian industries hovered around 19%.
Few came close to matching the performance of Tata Consultancy Services (TCS), which posted a 353.64% long-term growth. Although established in 1968, TCS had really come into own over the past few years as one of the strongest examples of Indian global competitiveness and innovation. TCS offers consulting, IT services, engineering and industrial services, and most famously, business process outsourcing (BPO) and operates in over five continents. Following its August IPO, the company became the first Indian IT to announce revenues in excess of $2 billion.
Infosys Technologies generated massive revenues of US$ 118 million. This software development company has notched CAGR of 66% for the last half decade with net incomes rising by 65% and maintained gross margins of above 40%.The company listed its share in 1993 and since then its share price has rise by 24,632%,. Its market capitalization accounts for 12% of the Bombay stock exchange. Other really big players in the Indian software and ITES industries include
Wipro Technologies
HCL
Intel
GE
IBM
Dell
Microsoft
Cisco
Foreign Direct Investment Policy in IT
FDI of up to 100 percent is permitted for E-Commerce activities subject to the condition that such companies 26 percent of their equity would be divested in favor of the Indian public in five years, if these companies are listed in other parts of the world. Such companies would engage only in business to business (B2B) E-Commerce and not in retail trading, inter alia, implying that existing restrictions on FDI in domestic trading would be applicable to E- Commerce as well.
Future prospects: According to NASSCOM, rapid growth will continue to be the earmark of the IT-ITES sector during 2006-07. The projected revenue of this industry is expected to touch the US$ 36-38 billion mark in 2006-07, representing a growth of between of over 25% per cent. Expected growth of IT-ITES industries is projected to be 27-30 percent in 2006-07, posting revenues between US$ 29-31 billion. The domestic market too is forecasted to grow rapidly at a rate of 20 percent, based on a rollout of E-governance, initiatives and automation of key sectors such as retail, healthcare, transportation and manufacturing among others.
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