Infotech Lead India: A Deloitte report said India’s growth companies are powering through the global financial uncertainty, with the leaders increasing their revenue growth rate.
In Technology Fast 50 (Tech Fast) rankings for the Technology, Media & Telecommunication (TMT) industry vertical for 2012, top five companies showed a remarkable improvement in the average three-year revenue growth of 1947 percent, compared to 910 percent last year, the highest average three-year revenue growth in all the previous editions of the Fast 50 India program since 2005.
The average percentage growth for all the top 50 companies this year showed an improvement over last year’s total, at 432 percent, up from 236 percent in 2011 – testament to the strength and depth of India’s growth economy. All the top 50 winners of this year recorded a three year revenue growth in excess of 100 percent – a phenomenon noted in five of the eight editions of the Fast 50 India program.
The overall winner in this year’s ranking is Online Recharge Services Private Limited realizing a remarkable 5227 percent three year revenue growth. The second, Amagi Media Labs achieved 1497 percent, whilst the third placed Prizm Payment Services, grew by 1190 percent.
In the past we have seen subdued economic environment skewing the winners list towards mature and well established companies. This year’s results, surprisingly, do not adhere to this trend. Combination of a strong India focus, presence in steadier segments like education, social sector and healthcare aided these companies in achieving their growth rates.
In the Software sector, Analytics and Mobile VAS had a sustained presence in this year’s winners list. Though Mobile VAS had a muted presence compared to the surge noted in the previous edition. Security and risk management companies have a strong representation. With tighter regulations combined with e-based or mobile based transactions growing exponentially, this sector may throw up more surprises in the coming years. Outsourced product developers continued their momentum, especially with the opportunities thrown up by the iOS and Android platforms.
Internet portal based companies have significantly increased their presence constituting18 percent of the winners list, up from 10 percent in the previous edition. Whilst Indian e-commerce wave is often highlighted, it is refreshing to note other internet-based businesses joining the growth trajectory along with the e-commerce businesses. There have been strong performances of e-commerce enablers like payment technology and content aggregators.
The presence of Media & Entertainment segment remained consistent with the previous edition, whilst Biotechnology and Telecommunications/Networking companies showed a marginal decline in the winners’ composition.
E-commerce enablers like Payments technologies are seeing significant traction and attracting a new wave of investment. e-Commerce in conjunction with mobile commerce is expected to be the dominant theme in the coming years. Analytics and Mobile VAS have continued the sustained growth that we have been seeing over the past few years.
Outsourced product developers are showing continued growth momentum. With the opportunity opened by the iOS and Android platforms, these software specialist houses are no longer dependent on Independent Software Vendors as their clients but can reach out to a global audience directly.
App development is gaining momentum with many companies looking to offer a bouquet of product suites aimed at mobility.
Cloud based business models are evolving and cloud continues to be a dominant and populist theme. Though we have seen only a few pure-play cloud based models as winners, most of the winners this year as well as the rest of the market have a strategy that is driven directly or indirectly by cloud adoption. Cloud is a major change agent and is making companies think very seriously on how to adapt or change their business models.
More and more on theme based approach amongst the IT services companies to drive their next round of growth. We expect companies to focus on certain very specific themes like Healthcare, Energy & Utilities – The difference between their earlier approach towards these verticals and their current approach would be that whilst previously the companies would look at disjointed set of services that they could offer to companies in these verticals, now they are focusing on a more integrated approach.
If we take the case of energy & Utilities, companies are trying to offer Business Intelligence and Analytics oriented solutions that become very relevant on adoption of smart grid technology.
Interplay of software and internet with education and healthcare expected to surge in the coming years. Business models enabling content aggregation, interactivity among students, teachers and other stakeholder in the ecosystem and specialized training are segments to watch out for. Healthcare service is also using unique interface of internet and technology to reach services to the mass amongst other innovative combination of technology and healthcare.
The Deloitte Tech Fast 50 India Program conducted by Deloitte Touche Tohmatsu India (DTTIPL), now in its eight year, ranks the fastest growing technology companies in India based on their percentage revenue growth over the last three financial years.
Rajiv Sundar, senior director, Deloitte Touche Tohmatsu India