The Indian Software and IT Outsourcing Industry

India's software industry has over the years grown inNext up is Wipro Technologies (NYSE - WIT) a
importance in the global market that we now have.company that has over the past couple of years has
The majority of revenue generated is from theirsnapped up various US and European companies,
export market (i.e. selling services to offshorewhich is sure to have sent out a message to their
companies), which is in heavy competition with theWestern competitors of their intent to continue moving
USA.forward. And its competitors in the West are
After 9/11, many companies around the world realisedcompanies which just cannot compete with India's
the need for offshore back-up systems and thislower wagers but higher skills level.
prompted a rash of investment by banks, airlines,What can major Western software companies do to
telecommunications and IT companies.fight back? Will home grown Indian companies be
The Indian software industry is worth approximatelybuying up the major Western players as they find that
$38billion, with $31billion of that being generated fromthey cannot compete in the long-term?
exports.I cannot answer the second question, but a possible
So who are the major players?answer for the first is that some of the advantages
Infosys (NASDAQ - INFY), which floated on the USestablished Western companies have over emerging
stock market in 1999, is an Indian IT outsourcing with noIndian companies are the experience in managing
Indian clients. It's purely a player on the global stage andprojects efficiently and meeting deadlines and the
one that's only growing. Its shares may not be on thebasic infrastructure within their own company and
rise right now, but once the dollar grows back insociety ensures there is less rough and more polish. It's
strength their value will show and it will be time to sell.not to say that some of India's IT companies are not
If you're brave and enjoy a venture in to the foreignon equal (or superior) footing in terms of infrastructure
markets India's TCS (Tata Consultancy Services Ltd)but the companies leading the way in terms of
is another of the major players in India's software andinfrastructure are majors such as TCS, Wipro and
IT outsourcing industry. Tata may be a name familiarInfosys. For smaller projects, investment in India is a
to many of you from Tata Holdings, which is one ofgamble, as you may not know of the products doom
India's biggest industrial groups, so you can feel veryuntil the eleventh hour. Western companies survival will
confident about this stock's value and future. Currently,depend up on them promoting the quality of
TCS (TCS.NS) is listed on India's national stockdevelopment they have to offer and the solidity of
exchange.project management from beginning to end.