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Indian IT firms struggle to woo new clients
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Indian IT firms struggle to woo new clients
The IT firms in India are left high and dry as they struggle hard to rope in more revenue through new clients. In the second quarter, of the total revenue of all the top five Indian IT companies around 93 to 99 percent is contributed by their clients.
However, the slowdown in U.S. and Europe and the decline in IT spending, resulted in a considerable decline in the number of clients added by the firms. The number of clients added by Infosys Technologies has come down from 48 to 40 c
lients, while for Wipro it declined from 59 to 28 clients in the second quarter. Even other firms like Satyam Computer Services added 33 new clients compared to 37 clients in the previous year. However, there are some exceptions like Tata Consultancy Services (TCS) who managed to tote up the same number of clients as the year before and HCL squared on 29 clients, a surge from last year`s addition of 19 clients.
Infact, the companies are witnessing a rise in the percentage of their repeat business. As reported in Mint, Infosys Chief Operating Officer (COO) S.D. Shibulal said, "Our repeat business this quarter was 99 percent plus, which shows that we are able to mine our existing accounts. But, at the same time, it shows that we are not able to ramp up our new clients and that is something which we need to focus on." The firms are unanimous in their reactions as they believe that addition of new clients is equally important to increase the base of key customers simultaneously. They are of the opinion that there is a need to move from a business-as-usual approach to more of transformation approach.
Source:
http://www.siliconindia.com/shownews/48905
However, the slowdown in U.S. and Europe and the decline in IT spending, resulted in a considerable decline in the number of clients added by the firms. The number of clients added by Infosys Technologies has come down from 48 to 40 c
lients, while for Wipro it declined from 59 to 28 clients in the second quarter. Even other firms like Satyam Computer Services added 33 new clients compared to 37 clients in the previous year. However, there are some exceptions like Tata Consultancy Services (TCS) who managed to tote up the same number of clients as the year before and HCL squared on 29 clients, a surge from last year`s addition of 19 clients.
Infact, the companies are witnessing a rise in the percentage of their repeat business. As reported in Mint, Infosys Chief Operating Officer (COO) S.D. Shibulal said, "Our repeat business this quarter was 99 percent plus, which shows that we are able to mine our existing accounts. But, at the same time, it shows that we are not able to ramp up our new clients and that is something which we need to focus on." The firms are unanimous in their reactions as they believe that addition of new clients is equally important to increase the base of key customers simultaneously. They are of the opinion that there is a need to move from a business-as-usual approach to more of transformation approach.
Source:
http://www.siliconindia.com/shownews/48905
