Indian suppliers to double UK IT 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 per cent to seven per cent over the next three years, according to consulting group Pierre Audoin Consultants (PAC).

Special Report: Inside India

In February silicon.com's Steve Ranger visited the Indian tech hotspots of Bangalore, Mumbai, Pune and Hyderabad. Click on the links below to see photo galleries of the cities and companies visited.

♦ Satyam's IT campus
♦ Hyderabad's tech parks
♦ Bringing tech to rural India
♦ High-tech on the streets of Pune
♦ Pune - the new Bangalore?
♦ Boom town Bangalore
♦ Bangalore's Electronics City
♦ SAP and Wipro in Bangalore

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 last 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 in order to continue to secure deals of this magnitude, vendors will have to demonstrate they can execute staff transfer deals, manage subcontractor and local partner networks, as well as 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."