IT sector’s 30% revenues maybe from non-US, UK markets by 2030
Japan, Australia and the Middle East and the home market, among others, will largely help alter the geographic mix. To be sure, average contract values in these geographies will still be relative stragglers in comparison with those finalised by Anglophone clients either side of the Atlantic.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Digital TransformationVisitIIM KozhikodeIIMK Advanced Data Science For ManagersVisitIndian School of BusinessISB Product ManagementVisitAccording to data from technology research firm UnearthInsight, the US and Europe currently contribute 75-80% of the global IT services market while the rest 20-25% is spread across 70-80 countries. This share is likely to increase to 30% by fiscal 2030 said Gaurav Vasu, founder and chief executive at UnearthInsight.
Both TCS and Infosys have increased revenues from the rest of the world (markets outside US and Europe). While TCS drew revenues of $1.22 billion at the end of second quarter this year up from $1.14 billion at the end of Q2 last fiscal, in the case of Infosys it increased from $564 million to $585 million in the same period.
Omdia's IT Services Contracts Database also said that a majority of upcoming large contract (over $500 million) renewals in the next year are centred in the US, Europe (including the UK, France, Spain, and Germany), India, and Japan.
“In recent years, Indian Systems Integrators (SIs) have been gaining ground against incumbents (in these markets), a trend that is expected to continue,” said Hansa Iyengar, senior principal analyst at Omdia.
Smaller deals
However, there's a higher likelihood that these contracts will be fragmented into smaller
