“Here are some figures for anyone who has doubted the future of the Indian software industry.
In calendar year 2003 Cognizant has upped its revenue guidances for the year five times — each time by hefty amounts.
It started by predicting revenues of $229 million and that climbed to between $300 million and $305 million. Cognizant didn't stop there. It revised its guidances three more times: first to $330 million, then to $354 million and finally to $365 million.
One thing's for sure. Cognizant is about to post terrific returns. The company believes that revenue growth will climb by 60 per cent for 2003. That means it's about to post the highest revenue growth amongst India's top five software services players.
Says Lakshmi Narayanan, president and chief operating officer, Cognizant: "The reasons for such stupendous growth are clear. The IT industry is transitioning from the early stages of a global mega trend in offshore outsourcing to a mainstream mode where offshore outsourcing is seen as the highest priority by Fortune 500 and blue chip companies in the US and Europe."
Cognizant isn't the only company that has the champagne ready. In Delhi Vijay K Thadani is looking pleased.
For the chief executive officer of NIIT, business seems to be booming after about two years of instability.
The company has recorded a 347 per cent increase in net profit to Rs 5.9 crore (Rs 59 million) in the fourth quarter of 2003 against a Rs 1.31 crore (Rs 13.1 million) net profit last year.
These aren't isolated cases. After two years of cost-cutting and living with trimmed margins, the Indian software industry is once again on a roll. Most companies have announced improved business and have revised projections upwards.
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