Of the top 20 IT service providers by revenue, four companies – Samsung SDS, NetEase, Wipro and Intuit – reported an increase of more than 25% in their year-on-year (YoY) revenue due to increasing digital transformation.
Around 90% of the top 20 companies recorded positive growth and over 65% of them witnessed double digit YoY growth in revenue in 2021.
Only Fujitsu and DXC Technology reported a decline in their YoY revenue, found GlobalData.
- Accenture – Accenture recorded a 14% revenue YoY growth and a 15.6% net profit YoY growth thanks to a significant rise in its communications, media and technology, financial services, and health & public service businesses.
- Hewlett Packard Enterprise (HPE) – HPE witnessed a 3% YoY revenue growth due to an improved performance across all segments, especially the Intelligent Edge segment which grew by 15% YoY.
- Capgemini – Capgemini secured an 18.9% YoY revenue growth in 2021 due to the strong performances of its digital and cloud service businesses and the acquisition of Altran.
- Intuit – The acquisition of Credit Karma, growth in its online ecosystem revenue and a shift in higher priced offerings were the prime reasons for Intuit’s revenue growth in 2021. The company witnessed a 25.4% or $2 billion YoY revenue growth in 2021, with Credit Karma being responsible for $865 million of that revenue.
- Wipro – Wipro was the highest gainer with a 27.7% YoY growth in revenue in fiscal 2021. This was primarily driven by a significant increase in demand for its IT services, acquisitions, an increase in new deals and foreign exchange differences.
- Infosys – Infosys’ revenue grew by 21.1% YoY primarily led by new deal wins, growth in digital revenues and volume increases across several segments. Digital revenues grew substantially YoY by 42.6% due to higher demand for cloud capabilities.
- Tata Consultancy Services (TCS) – TCS became the first Indian IT major to reach a milestone of $25 billion in revenue in fiscal 2021. The company witnessed a 16.8% YoY revenue growth primarily led by increased cloud adoption, outsourcing and digital transformation initiatives.
- HCL – HCL reported a 13.6% YoY revenue growth in 2021 driven by a significant rise in engineering and R&D services, and IT and business services. Services revenue crossed the $10 billion milestone.
- DXC Technology – The disposition of its HPS business in Q1 2022 and its HHS business in Q3 2021 resulted in an 8.3% YoY decline in DXC Technology’s revenue in the recent fiscal year. Project terminations, project completions and contractual price adjustments also accounted for the decline.
Ragupathy Jayaraman, business fundamentals analyst at GlobalData, comments: “The industry will continue to remain cautious due to the ongoing volatile geopolitical situation and the pandemic. IT service providers will be focusing extensively on cost optimisation and revenue stabilization initiatives, in addition to the enhanced focus on digital transformation.”