Indian IT services to double UK market share

India's five largest IT services suppliers will double their market share in the UK by 2011.

India's top five services companies — HCL, Infosys, Satyam, TCS and Wipro — are on course to grow their share of the UK software and IT services market from just under three percent to seven percent over the next three years, according to consulting group Pierre Audoin Consultants (PAC).

PAC said that, based on the firms' growth trajectory, one of these leading Indian vendors will pass £1bn in annual revenue from the UK during this period, becoming one of the UK's top 10 software and IT services suppliers.

In the past 18 months, UK companies including Carphone Warehouse, DSG and Skandia have all committed to £100m-plus contracts with Indian service providers.

But the report says to continue securing deals of this magnitude, vendors will have to demonstrate they can execute staff-transfer deals, manage subcontractor and local-partner networks, and combat the steady erosion of their price advantage by rising domestic labour costs in India.

Nick Mayes, senior consultant at PAC, said: "Low prices are no longer the only weapons in the armoury of the Indian services vendors, and they are winning business against Western suppliers on the quality and depth of their offerings."