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European Market Propels Growth for Indian Tech Firms in FY24
European Market Propels Growth for Indian Tech Firms in FY24

March 24, 2024

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In the ever-evolving realm of Indian technology industry, significant shifts are reshaping the landscape with a notable focus on European markets. According to Nasscom's Strategic Review report for 2024, regions such as Continental Europe, the UK, and APAC have shown promising growth rates; driven by an increased emphasis on digital maturity and technology adoption across various sectors. However, USA which is traditionally the largest market, experienced a more subdued growth rate of 2.9% in 2023 due to ongoing macroeconomic challenges including the banking crisis.

Breaking down the share of exports by geography in 2024 reveals that USA remains the dominant market with a share of 62%, followed by the UK at 17%, Continental Europe at 11%, APAC at 8% and the Rest of the World at 2%.

 

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Source: nasscom

 

Shift Towards Europe

This blog analyses the top four Indian technology companies - TCS, Infosys, HCLTech and Tech Mahindra. We note a growing share of their expansion originating from Europe which indicates  a notable shift in their strategic priorities.

 

Geographic growth for Indian Tech companies

Note: Data is as of Q3FY24.

Source: Company website, nasscom

*TCS data for Europe only includes Continental Europe.

 

European Mega Deals

In 2023, the top listed Indian technology companies secured significant deals across Europe in line with their global expansion strategies. These large-scale agreements underscored India's growing prominence as a key player in the European tech landscape. Companies like TCS, Infosys, HCLTech, Tech Mahindra and Wipro emerged as frontrunners, leveraging their expertise to win major contracts in various sectors. From collaborations with renowned organizations like Marks & Spencer’s and British Broadcasting Corporation (BBC), these deals showcased the breadth of Indian firms' capabilities and their ability to deliver innovative solutions tailored to European markets. Such deals not only bolstered the revenue streams of these Indian tech companies but also solidified their position as trusted partners in Europe's digital transformation journey.

Key deals by Indian tech companies in Europe & UK - 2023

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Source: Company website, News Articles

 

Conclusion

While North America continues to remain the largest market for Indian tech companies, Europe is gaining momentum and emerging as a promising destination. It will be interesting to observe its evolution as a preferred market in the future. As companies continue to strengthen their presence in Europe, the landscape of global technology markets is undergoing a significant transformation.

 

Source:

  • Company Website
  • News Articles

 

To know more, read our following reports:

Strategic Review report – Rewiring Growth in the Changing Tech Landscape: https://t.ly/PO39n

Quarterly Industry Review Q3FY24: https://t.ly/6ZIzm

 


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Prajwal Pandey
Research Analyst

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