As US, Europe Stall, India's IT Giants Head East for Growth

Australia, Japan, South Korea, and Philippines are among the growth targets of top IT firms

- Jas Bardia

India's top IT services companies are increasingly placing bold bets on markets like Australia, Japan, South Korea, and the Philippines as their biggest markets stay stagnant. Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, and Wipro Ltd have cumulatively announced about half a dozen acquisitions or government partnerships in under 12 months to offset macro uncertainties and expand their footprint.

These IT outsourcers earn 84-94% of their revenue from the US, Canada, and Europe, and the rest from 'growth markets,' which include Latin America and Asia-Pacific regions such as Australia, New Zealand, and India.

However, the strategy is fraught with challenges and could take a while to yield significant additional revenue as the US and Europe remain the sector's largest cash cows. Additionally, these geographies may not become as big for these companies in at least 18-24 months, according to analysts.