Introduction
Many of you will remember last year’s very successful blog regarding the Top 10 India-Based IT Services Companies for 2022, where Mphasis was rated as the #1 overall performing “India-Based” IT Services Company.
We decided to expand the focus this year beyond “India” to include the rest of the world, and while India remains a critical region for offshoring talent, and certainly India-based firms are disproportionately represented in the analysis, the India-based firms are also competing (and winning) head-to-head with the global elite, so there is no reason why we can’t measure them in the full context of the highest demands of our global clients.
As is true every year, there is a lot of market activity in the early months of the year with IT Services Companies. One of the main reasons is due to the disproportionate number of new deals and renewals we see in March, related in large part to the fiscal year ends of major players such as:
- #DXC
- #Fujitsu
- #Infosys
- #Kyndryl
- #LTI (Larsen & Toubro Infotech)
- #Mindtree
- #Mphasis
- #NTT Data
- #TCS (Tata Consultancy Services)
- #TechMahindra
- #Wipro
In addition to this factor, clients continue to focus on their need for digital transformation, driven this year by the need to:
- Modernize (automate) to save money and prepare for a difficult year ahead.
- Exploit the business benefits of better machine-learning efforts and AI applications.
- Connect disparate legacy systems to give them the information they need to respond to the changing demands of the business in the wake of the pandemic.
- Respond to organic industry forces and/or address the higher demands of professional-class consumers who require increasingly more sophisticated applications and better mobile access.
Often, after annual planning processes, these plans pick up steam, which also causes somewhat of a wave of activity in Q1 culminating in March.
Further, the ongoing customer fallout from IBM’s managed services spin-out of Kyndryl is also a market-accelerating force fueled in large part by Kyndryl’s client and revenue attrition, as well as its choking level of debt loads and compressed margins. Kyndryl is not alone in being disruptive to any meaningful customer cost savings efforts while at the same time demanding price increases just when customers can least afford it. Read more on this in a blog about Why March is the best time to Re-Do your IT Services Deals.
We Renewed Nine (9) of our Top 10 Firms: To bring our 2023 ratings to market, we refreshed our analysis on the firms that were in our 2022 results and were also included in our 2023 ratings. These firms include:
Cognizant
Cognizant is a multinational technology and IT services company that provides a range of digital, technology, consulting, and operations services to clients globally. It was founded in 1994 and is headquartered in Teaneck, New Jersey, United States. The company has a strong presence in North America, Europe, and Asia Pacific, with operations in over 40 countries. Cognizant provides a range of IT services, including digital transformation, application development and management, infrastructure management, and business process services. The company has a strong presence in key industry verticals, including financial services, healthcare, manufacturing, and retail. It is known for its focus on innovation and its commitment to delivering high-quality services to its clients. In addition to its IT services, Cognizant is also involved in digital and technology consulting, and has a strong reputation for its expertise in digital transformation and innovation. The company is considered to be one of the largest IT services companies in the world and has a large and diverse client base.
HCL Technologies
HCL Technologies is a multinational technology and IT services company based in Noida, India. The company was founded in 1976 and provides a range of digital, technology, and IT services to clients globally. HCL has a strong presence in India and has expanded globally, with operations in over 40 countries in Europe, Asia Pacific, and the Americas. HCL provides a wide range of IT services, including digital transformation, application development and management, infrastructure management, and business process services. The company has a strong presence in key industry verticals such as banking and financial services, retail, healthcare, and manufacturing. HCL is known for its innovative approach to technology and its commitment to delivering high-quality services to its clients. In addition to its IT services, HCL is also involved in engineering and R&D services and has a reputation for its expertise in product development and innovation. The company is considered to be one of the leading IT services companies in the world and has a large and diverse client base.
Hexaware
Hexaware is an Indian multinational information technology (IT) services and consulting company based in Mumbai, India. The company was founded in 1990 and provides a range of digital, technology, and IT services to clients globally. Hexaware has a strong presence in India and has expanded globally, with operations in over 20 countries in Europe, Asia Pacific, and the Americas. Hexaware provides a range of IT and business process services, including digital transformation, application development and management, infrastructure management, and consulting services. The company has a strong presence in key industry verticals such as financial services, healthcare, manufacturing, and retail. Hexaware is known for its innovative approach to technology and its commitment to delivering high-quality services to its clients. In addition to its IT services, Hexaware is also involved in engineering and R&D services, as well as cloud computing and data analytics. The company has a reputation for its focus on sustainability and corporate social responsibility and is widely regarded as a leader in the industry. Hexaware is considered to be one of the leading IT services companies in the world and has a large and diverse client base.
Infosys
Infosys is an Indian multinational information technology (IT) services and consulting company based in Bangalore, India. The company was founded in 1981 and provides a range of digital, technology, and IT services to clients globally. Infosys has a strong presence in India and has expanded globally, with operations in over 50 countries in Europe, Asia Pacific, and the Americas. Infosys provides a range of IT and business process services, including digital transformation, application development and management, infrastructure management, and consulting services. The company has a strong presence in key industry verticals such as financial services, healthcare, manufacturing, and retail. Infosys is known for its innovative approach to technology and its commitment to delivering high-quality services to its clients. In addition to its IT services, Infosys is also involved in engineering and R&D services, as well as cloud computing and data analytics. The company is considered to be one of the largest IT services companies in the world and has a large and diverse client base. Infosys has a reputation for its focus on sustainability and corporate social responsibility and is widely regarded as a leader in the industry.
LTI
LTI (Larsen & Toubro Infotech) is an Indian multinational information technology (IT) services and consulting company based in Mumbai, India. The company was founded in 1997 and provides a range of digital, technology, and IT services to clients globally. LTI has a strong presence in India and has expanded globally, with operations in over 30 countries in Europe, Asia Pacific, and the Americas. LTI provides a range of IT and business process services, including digital transformation, application development and management, infrastructure management, and consulting services. The company has a strong presence in key industry verticals such as financial services, healthcare, manufacturing, and retail. LTI is known for its innovative approach to technology and its commitment to delivering high-quality services to its clients. In addition to its IT services, LTI is also involved in engineering and R&D services, as well as cloud computing and data analytics. The company has a reputation for its focus on sustainability and corporate social responsibility, and is widely regarded as a leader in the industry. LTI is considered to be one of the leading IT services companies in the world and has a large and diverse client base.
Mphasis
Mphasis is an Indian multinational information technology (IT) services and consulting company based in Bangalore, India. The company was founded in 2000 and provides a range of digital, technology, and IT services to clients globally. Mphasis has a strong presence in India and has expanded globally, with operations in over 50 countries in Europe, Asia Pacific, and the Americas. Mphasis provides a range of IT and business process services, including digital transformation, application development and management, infrastructure management, and consulting services. The company has a strong presence in key industry verticals such as financial services, healthcare, manufacturing, and retail. Mphasis is known for its innovative approach to technology and its commitment to delivering high-quality services to its clients. In addition to its IT services, Mphasis is also involved in engineering and R&D services, as well as cloud computing and data analytics. The company is considered to be one of the leading IT services companies in the world and has a large and diverse client base. Mphasis has a reputation for its focus on sustainability and corporate social responsibility, and is widely regarded as a leader in the industry.
TCS
Tata Consultancy Services (TCS) is an Indian multinational information technology (IT) services and consulting company based in Mumbai, India. The company was founded in 1968 and provides a range of digital, technology, and IT services to clients globally. TCS has a strong presence in India and has expanded globally, with operations in over 50 countries in Europe, Asia Pacific, and the Americas. TCS provides a range of IT and business process services, including digital transformation, application development and management, infrastructure management, and consulting services. The company has a strong presence in key industry verticals such as financial services, healthcare, manufacturing, and retail. TCS is known for its innovative approach to technology and its commitment to delivering high-quality services to its clients. In addition to its IT services, TCS is also involved in engineering and R&D services, as well as cloud computing and data analytics. The company is considered to be one of the largest IT services companies in the world and has a large and diverse client base. TCS has a reputation for its focus on sustainability and corporate social responsibility, and is widely regarded as a leader in the industry.
Tech Mahindra
Tech Mahindra is an Indian multinational technology and IT services company based in Mumbai, India. The company was founded in 1986 and provides a range of digital, technology, and IT services to clients globally. Tech Mahindra has a strong presence in India and has expanded globally, with operations in over 50 countries in Europe, Asia Pacific, and the Americas. Tech Mahindra provides a range of IT services, including digital transformation, application development and management, infrastructure management, and business process services. The company has a strong presence in key industry verticals such as telecommunications, financial services, healthcare, and manufacturing. Tech Mahindra is known for its innovative approach to technology and its commitment to delivering high-quality services to its clients. In addition to its IT services, Tech Mahindra is also involved in engineering and R&D services, as well as automation and technology consulting. The company is considered to be one of the leading IT services companies in the world and has a large and diverse client base. Tech Mahindra has a reputation for its focus on sustainability and corporate social responsibility, and is widely regarded as a leader in the industry.
Wipro
Wipro is an Indian multinational information technology (IT) services and consulting company. The company was founded in 1945 and is headquartered in Bangalore, India. It has a strong presence globally, with operations in over 50 countries in Europe, the Americas, and Asia Pacific. Wipro provides a range of IT and business process services, including digital transformation, application development and management, infrastructure management, and consulting services. The company has a strong presence in key industry verticals such as financial services, healthcare, manufacturing, and retail. Wipro is known for its innovative approach to technology and its commitment to delivering high-quality services to its clients. In addition to its IT services, Wipro is also involved in consumer care and lighting, as well as other businesses. The company is considered to be one of the largest IT services companies in the world and has a large and diverse client base. Wipro has a reputation for its focus on sustainability and corporate social responsibility, and is widely regarded as a leader in the industry.
We Added Six (6) Firms: To make the 2023 piece more global, category-based, and comprehensive:
DXC
DXC Technology is a multinational IT services company that provides a range of technology and consulting services to clients globally. It was formed in 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise (HPE). The company is headquartered in Tysons, Virginia and has a strong presence in North America, Europe, and Asia Pacific. DXC provides IT services and solutions to clients in various industries including financial services, healthcare, energy, and the public sector. Its services include digital transformation, cloud computing, cybersecurity, application development, and infrastructure management. The company has a large network of partners and alliances, and is known for its innovative approach to IT services and its focus on delivering value to its clients.
Fujitsu
Fujitsu is a Japanese multinational technology company that provides a range of technology products and services, including computer hardware, software, and networking solutions. The company was founded in 1935 and is headquartered in Tokyo, Japan. It has a strong presence globally, with operations in Europe, the Americas, and Asia. Fujitsu offers a wide range of products and services, including servers, storage, personal computers, networking solutions, and cloud computing services. The company also provides IT services, such as consulting, system integration, and outsourcing services. Fujitsu has a strong reputation in the industry for its expertise in technology and its commitment to delivering innovative and high-quality products and services. In addition to its technology services, Fujitsu is also involved in a range of other businesses, including document processing and environmental services. The company has a long history of innovation and is widely regarded as one of the leading technology companies in the world.
Kyndryl
Kyndryl is the managed services spin-out of International Business Machines (IBM) created in 2021 to focus on cloud services, application and infrastructure management, automation, and security. The company was formed to bring together the key assets and capabilities of IBM's Managed Services and Cloud & Cognitive Software businesses. Kyndryl provides a range of cloud-based services to its customers, including public, private, and hybrid cloud offerings, as well as support for multi-cloud deployments. The company's focus is on helping its clients transform their businesses by leveraging the latest cloud and automation technologies to modernize their applications and IT infrastructure. Kyndryl is considered a new entrant in the cloud services and IT consulting market and aims to compete with other established players such as Amazon Web Services, Microsoft Azure, and Google Cloud. The company has a global presence, with operations in several countries in Europe, Asia Pacific, and the Americas.
Microland
Microland is an India-based IT services company that provides digital transformation solutions to enterprise customers globally. The company was founded in 1989 and has headquarters in Bengaluru, India. It offers a range of services including infrastructure management, cloud computing, digital workplace services, cybersecurity, and networking solutions. Microland has a strong presence in India and has expanded globally, with offices in the United States, the United Kingdom, and the Middle East. The company is known for its innovative approach to IT services and has a strong reputation for delivering high-quality services to its clients.
Mindtree
Mindtree is a global technology services and digital transformation company, founded in 1999 and headquartered in Bengaluru, India. The company provides a range of IT services, including application development and management, infrastructure management, and digital transformation services. Mindtree has a strong presence in India and has expanded globally, with offices in North America, Europe, and the Asia Pacific region. Mindtree is known for its expertise in delivering technology solutions in key industry verticals such as banking and financial services, retail, healthcare, and manufacturing. The company has a reputation for its focus on innovation and its commitment to delivering high-quality services to its clients. Mindtree has a diverse portfolio of clients, including both large multinational corporations and smaller businesses.
NTT Data
NTT Data is a Japanese multinational IT services company that provides a range of IT and business process services to clients globally. It was established in 1988 and is headquartered in Tokyo, Japan. The company has a strong presence in Asia, Europe, and the Americas, and has a large network of subsidiaries and partnerships. NTT Data provides a wide range of IT services, including consulting, system integration, application development, and outsourcing. It has expertise in various industries including finance, healthcare, manufacturing, and the public sector. The company is known for its innovative approach to IT services and its commitment to delivering high-quality services to its clients. NTT Data has a strong reputation in the industry and is considered to be one of the largest IT services companies in the world.
We Removed One (1) Firm: that was in the 2022 ratings, but not included in the 2023 Analysis:
Zensar was included in the 2022 ratings, but the company has had a difficult couple of years. Not only did it suffer back-to-back years of revenue declines, but it also had sequential years of reductions in workforce levels. In 2022 alone, the market capitalization of Zensar was down over 57%. They have also been less active in our client base and not actively competing favorably to win new deals – so we have dropped them from consideration this year.
We also didn’t include any of the more traditional IT Consulting firms, even though some of them (most notably Accenture) do also provide IT (Outsourcing) Services, and could clearly compete in this category. We do have a different piece coming out on the consulting firms soon, so we are comparing those firms amongst each other as we treat those as a slightly different category. Stay tuned for the future blog on this topic called, “The Summer of IT Consulting Love”. Keep in mind that if we did evaluate Accenture (as an example) on the same merits as the suppliers in this analysis, they would rank towards the middle of the pack, so we don’t believe this to be an oversight, merely an issue of categorization.
Purposeful Exclusions:
- Accenture
- Bearing Point
- Capgemini
- Deloitte
- EY
- KPMG
- PwC
Don’t forget to download our original Whitepaper that outlines our Top 25 Recommendations on How to Negotiate Best-in-Class IT Services Contracts
Executive Summary:
To rank suppliers, we utilize a proprietary methodology in our “Federated Market Intelligence” (FMI). We build our FMI with layers of information and analysis including direct client feedback, our own empirical experiences and data points, market and supplier research, independent third-party analysis, and live field interactions among several other layers and then we weight using a blended average of historical examples and predictive models based on client priority for the upcoming year.
We selected the included firms based on our analysis of our own FMI plus several other factors, including the frequency with which we encounter these suppliers in our client accounts (both as incumbents, but also as insurgents), their coverage and service models, the alignment of their offerings to client need, the intensity of their will to win, and their service attitude and approach to do the right things for their customers. We further sourced data from a variety of channels including technology and peer review sites, many of which are included in our recent blog:
Our exposure to the market is less than 1/10th of 1% of all deals, so arguments can clearly be made for certain companies that either should or should not be included in our analysis, so we are not suggesting that because someone did or did not make our list, they are or are not worthy of consideration, by exclusion, we are generally indicating that we did not have enough interaction with these firms nor have clients that did to warrant their inclusion in our analysis.
As always, we are happy to hear your thoughts on who you think we should either include or exclude from this list so that future revisions of this list can be more targeted to client interest.
Supplier Rankings:
Here are our rankings of the Top IT Service Companies for 2023 as we have assessed them in the market, largely based on the collective feedback from our clients, our own empirical experiences, and that of the market research that was conducted.
We do not collaborate with suppliers to gather any information, conduct any research, evaluate any analysis, or create any content, so our conclusions remain completely objective, evidence-based, empirical, and not manipulated in any way to reach any desired outcome. In addition, no supplier has had any ability to influence or alter any of our evaluations. Any reader who has worked with us on a strategic sourcing project and/or for supplier performance management will recognize our proprietary methodology on how we turn opinion-based analysis into empirical data. We should also say that we do not accept supplier funding in any of our research and analysis unlike many of the industry analyst firms who rely on supplier contributions to fund their market research, which is precisely why Gartner, Forrester, and IDC did *NOT* make the Top 5 list in our recent blog:
On to our rankings! We should mention that our pricing rank is based on a proprietary algorithm we use to assess value which is called the Economic Value of IT (ITe), and includes components of cost, risk, enablement, quality, and agility, among other factors, so we are not simply comparing hourly rates at a given skillset.
Honorable Mentions:
None of the below honorable mentions (listed only in alphabetical order) finished in the Top 10, and none of them scored first in any of the categories we analyzed, however, that is not to say that these are not excellent and capable firms, so based on the workloads you are considering, any of these firms might be a good fit.
- Cognizant
- Infosys
- Kyndryl
- TCS
- Tech Mahindra
Top 10 IT Services Firms:
10.) LTI – was 4th in last year’s analysis when compared only to India-based IT Services companies, so to finish 10th when compared globally is not much of a drop-off. LTI finished first in both customer service and in pricing, and ranks high in DEI. LTI’s biggest problem in our analysis was that its own employees give the firm the lowest satisfaction scores of all firms evaluated.
9.) HCL – was 10th last year when compared only to India-based IT Services Companies, so to move up to 9th this year in competition with global firms is a sign of progress. Although HCL didn’t rank first in any of our categories, it did have strong showings in most categories – but still struggles with a low NPS score.
8.) Mindtree – did not make our list last year, but has good ratings for quality, and customer service, and an excellent rating for pricing, and had the highest NPS score of all companies evaluated.
7.) DXC – faces some difficulties in terms of its legacy. It has the worst NPS score of all firms considered, and suffers from the lowest rating of quality, customer service, and pricing, yet it scored first in corporate and team culture plus professional development – and had high scores for CEO approval rating and for leadership culture.
6.) Hexaware – did not rank first in any category but had strong showings in virtually all of them and just missed out on the Top 5. Perhaps its poorest rating relative to its peers was in the area of DEI.
5.) Wipro – didn't rank first in any category but has strong Top 10 showings in all of them except one – pricing. Wipro is typically considered lower cost, but that is on a $/hr basis, and not when considering productivity. As a result, the productivity drag is a weight on cost in the economic value of IT equation we use to determine pricing efficacy and overall value.
4.) NTT – didn't rank first in any category but had strong Top 5 showings in all of them except one – pricing. They are expensive but valuable, but in our analysis of the economic value of IT, their premium cost isn’t fully justified when compared to other viable market alternatives.
3.) Microland – newcomer to our list Microland has an excellent showing, ranking the highest in product quality, CEO score, and also employee satisfaction score. The company ranks dead last in professional development, however, so that is an area to work on for next year.
2.) Mphasis – our 2022 winner of top “India-Based” IT Services Firm in 2022 has another strong showing with a 2nd place finish in Top 10 IT Services Companies for 2023 with a broader pool of global competition. Mphasis ranks highest again in customer recommendation again this year.
1.) Fujitsu – is declared as the winner of our rankings in 2023. Fujitsu ranks high in nearly every category we measured with the exception of professional development, but employees rank the company compensation and benefits package higher than all other firms.
Closing
So, how do you think we did? Are these Top 10 IT Services Companies the ones you expected? Are there any on our list you think shouldn’t be on our list? Do you have any direct experiences with any of them you would like to share? Are there any other providers not on our list that you think should have made it to our Top 10? We are always interested to hear from you based on your actual field experiences, so sound off!
Please let us know if you have any feedback, as our content is always designed to respond to current market challenges, and to address the changing needs of our clients. May you and yours continue to have a safe, healthy, and happy 2023 and may your career continue to flourish as your company continues to thrive.
All the best!
About NET(net)
Founded in 2002, NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get, and keep more economic and strategic value in their technology supply chains. With over 2,500 clients around the world in nearly all industries and geographies, and with the experience of over 25,000 field engagements with over 250 technology suppliers in XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, Telecommunications, and other areas of IT spend, NET(net) has the expertise you need, the experience you want, and delivers the performance you demand, resulting in incremental client captured value in excess of $250 billion since 2002. Contact us today at info@netnetweb.com, visit us online at www.netnetweb.com, or call us at +1-616-546-3100 to see if we can help you capture more value in your IT investments, agreements, and relationships.
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