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Betting Big on India: 4 tech companies riding high on the burgeoning domestic market opportunity
Betting Big on India: 4 tech companies riding high on the burgeoning domestic market opportunity

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The Indian domestic tech market has maintained its growth momentum and has been growing faster than exports. This growth is being driven by several tech companies that are focused on building in India for India, undertaking contracts for digital transformation of Indian enterprises and remain bullish about upcoming opportunities in the market.

Apart from the tech companies already focused on India, others can also look to follow suit amidst global uncertainty, when the need to diversify into potential high growth markets is at an all-time high.

A look at 4 tech companies that are driving revenue growth from the India market, their strategies and key imperatives for other tech companies that can look to follow their lead in the future….

TCS reports 62.6% YoY growth from India market

TCS, which recently released its financial results for Q4FY25, reported a 62.6% year-on-year (YoY) growth from the India market. This was the highest growth reported among all other geographies, outpacing key markets like MEA (11.2% growth), Asia Pacific (6.8% growth), and Latin America (6% growth). Further, its share of growth from the India market grew 1.5X from 5.6% in FY24 to 8.6% in FY25.

The growth in the India market was driven by key factors like:

  • The BSNL-TCS deal worth over Rs 150 billion to help BSNL roll out a countrywide 4G network, which added to the company’s India revenue over the past few quarters
  • Higher projects within the government and public sectors, increased digital transformation and growing demand for IT services
  • Expansion of its partnership with Bank of Baroda to continue implementation of an end-to-end financial inclusion solution over the next five years; a three-year extension of its contract for SPARSH (System for Pension Administration – Raksha), a government of India initiative to streamline pension distribution for over 30 lakh defence pensioners; and signing a deal with ICICI Securities to modernize its retail trading and brokerage platform by deploying TCS BaNCSTM trading solution
  • Efforts to double down its commitment to India’s digital growth, by launching three India-focused offerings designed to accelerate AI-led transformation. These include TCS SovereignSecureTM Cloud, TCS DigiBOLTTM, and TCS Cyber Defense Suite. These offerings are tailored for India’s unique needs and are made in India, for India and are ready for the world.

Infosys registers 1.3X increase in India revenues

Infosys reported a 39% YoY increase in revenue from the India market, with a rise from $100 Mn during Q4FY24 to $139 Mn during Q4FY25. This growth can be attributed in part to government partnerships and other deals that the company signed. One of these was with Life Insurance Corporation of India (LIC) to revolutionize LIC’s operations with a state-of-the art NextGen Digital Platform, focusing on omnichannel experiences and data-driven hyper-personalization for its customers, agents and employees. Recently, Infosys Finacle, a part of EdgeVerve Systems, wholly owned subsidiary of Infosys collaborated for a new age solution to centralize Cholamandalam Investment and Finance Company Limited’s (Chola) treasury management on a unified web-based platform to enhance trading, risk management and operations.

Redington witnesses consistent growth in India

Redington, a domestic market focused player, has also been witnessing a consistent growth in revenue from the India market. Its revenue grew by 6% YoY during Q1FY25, jumped to 25% YoY during Q2FY25 and then by 18% YoY during Q3FY25.

A graph of growth in india market

AI-generated content may be incorrect.

The growth was driven by key factors like:

  • Increased activity in cloud, artificial intelligence (AI) and digital transformation spaces
  • Strong growth in two key business units i.e. Technology Solutions Group that comprises networking, security, software, server and storage solutions as well as the Mobility Solutions Group comprising smartphones and feature phones. Under the mobility segment, shift towards premiumization i.e. demand for premium smartphones both on Apple and Android drove growth in India
  • Growth in data centers where the company contributed both directly in purchasing equipment for data centers as well as to create capacity for data centers through several large deals

The company is now focused on expanding presence in India’s Tier 2 and 3 cities and into key verticals like pharmaceuticals, automotive and chemicals in the India market.

Sonata Software witnesses 44% QoQ rise in domestic revenues

Sonata Software, which generates over two-thirds of revenue from domestic products licensing and related services, witnessed a 44% QoQ rise in domestic revenues from Rs 1462 crore during Q2FY25 to Rs 2111 crore during Q3FY25.

A graph with red rectangles and a blue circle

AI-generated content may be incorrect.

Sonata’s growth in the India market was driven by key factors like:

  • New corporate clients and the defence sector
  • Renewal of large contracts for software and hyperscaler businesses
  • Expansion of its security business with existing customers

Key drivers that could propel domestic market growth in FY26

While all 4 tech companies mentioned above have been witnessing increasing growth owing to a diversified range of factors, there are several growth drivers that could propel domestic market growth in FY26. If tapped at an opportune time, these can enable other tech companies to diversify and leverage the ‘India for India’ opportunity. These drivers include:

  • State governments and academia’s interest in building digital, automated platforms: One key opportunity that can be tapped is presented by state governments investing in building digital platforms for skill development to ensure inclusivity of the youth in the last mile and allocating annual budgets for youth skilling linked with employability. Further, universities in India are looking for end-to-end automation platforms to make their online degree programs user-friendly and scalable. These can drive growth for companies offering platforms like TCS’ iON platform.
  • Leveraging India’s knowledge economy and cost advantage: Another key growth driver is abundant availability of knowledge resources in India, along with cost advantage and technology supremacy which provides a huge headroom for growth in the market.
  • Proliferation of data centers and move towards AI-based GPU data centers: The expansion of data centers, move towards AI-based GPU data centers, Gen-AI data centers and the government’s India AI mission has opened newer growth opportunities for companies focused on servers, storage subsystems, and cloud services. Further, GCCs would also help scale India's role in the AI cloud and many others in the enterprise IT space, opening newer opportunities.
  • Shift towards premiumization: Further, rising wealth in India is driving premiumization both in consumer tech and enterprise solutions, fueled and aided by proliferation of AI. Market estimates suggest that India is a $140 billion market driving innovation. This market growth will be driven by rising demand for AI smartphones, PCs and applications and platforms in the upcoming one or two years.
  • Reducing exposure to external markets by building in India for India: Lastly, a major factor to shift focus towards the domestic market is to reduce exposure to volatile markets abroad, developing supply chains within India by manufacturing in India and selling in India to build the India for India opportunity.

For more information on the trends shaping the Indian domestic market and upcoming opportunities, stay tuned for Nasscom’s upcoming report on the India Domestic Market Landscape, to be launched soon! 

 


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Kuhu Singh
Manager, Research

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