Services, India Fare Well on 2008 Software 500


Earlier this month, IT Business Edge blogger Dennis Byron wrote a post in which he contrasts the 1997 and 2007 Software 500 lists, looking at some of the latest entrants and noting some of the interesting software trends of the last decade.


Consulting companies and outsourcing providers such as Capgemini and India's Tata Consultancy Services (TCS) show up on the list thanks to the inclusion of services revenues, observes Byron. The same factor gives IBM first place in the rankings, even though it's not a software company in the same traditional sense as number-two Microsoft.


Indeed, companies that name system integration services/IT consulting as their primary business outnumbered all others in the list, according to Softwaremag.com, with 42 companies selecting the category vs. 29 companies in 2006.


Other sectors that grew in 2007: enterprise application/data integration; storage management; vertical industry applications, e-learning and outsourcing services. Sectors that declined: supply chain/manufacturing, business process management, customer relationship/call center management, engineering and application development


Global software revenues grew at a healthy rate of 14.7 percent in 2007, reaching $451.8 billion. Growth in workers employed by companies on the list was a much lower 1.3 percent, with a total workforce of 2,953,016. (This number is almost sure to decline in 2008, with all of the layoffs the industry is seeing now.) IBM was the largest employer of 2007 with 426,969 employees, followed by HP with 172,000 and Accenture with 170,000.


India's Wipro was the fastest-growing company among those with annual revenues of at least $1 billion, with a 127 percent increase in revenues for 2007. Compare this to Microsoft, with growth of 14.1 percent and IBM with growth of 11.5 percent. VMware was second in the $1 billion-plus category, with growth of 88 percent, followed by India's TCS with growth of 54 percent. India's Tech Mahindra had the second-largest gain in revenues (88 percent) among companies in the $100 million to $1 billion revenue range, finishing behind content management provider Open Text Corp with growth of 171 percent.


Indian companies made an overall good showing on the list, with TCS at No. 21, Infosys Technologies at No. 26, Satyam Computer Services at No. 49, Patni Computer Systems at No. 75, Tech Mahindra at No. 77, and Hexaware Technologies at No. 132.