Offshoring giants growing at breakneck speed

Indian tech companies continue to grow at a rapid pace, judging by the series of rosy third-quarter financial results filed in the last week.

Some of the largest India IT services companies are expanding at a furious pace, adding thousands of staff every quarter as they win deals from the established IT services companies.

Tata Consultancy Services (TCS) claimed the honour of being the first Indian tech company to clock up $1bn in revenues in a single quarter, reporting total revenues of $1.1bn for the quarter ended 31 December, 2006 - up 8.4 per cent quarter-on-quarter. It reported a net income of $250m, up 11.4 per cent quarter-on-quarter.

TCS also said 7,835 employees joined the company during the quarter, and said that among its highlights was a deal with a UK grocery retailer for application and infrastructure services which would lead to revenues of $70m.

Meanwhile Wipro reported total revenue at $899m for the quarter - a 43 per cent jump on the same period last year, with net income of $169m, an increase of 40 per cent over the same period last year.

Infosys said its third quarter revenues hit $821m, up 47 per cent on the same quarter last year, adding 3,282 new employees across the quarter.

Satyam said its software services revenues stood at $376m, an increase of 33.3 per cent compared to the same quarter last year, with net profit, at $71.1m up 24.3 per cent year on year. The company said it had added 34 customers in the quarter and added 2,476 staff.

Satyam's president Ram Mynampati told silicon.com the company is "tapping into other, lower cost economies" as part of its strategy for dealing with such rapid growth.