Cognizant, the US-headquartered IT services major, has received the highest share of global technology spend in the first quarter of 2014.
A Citi Research survey ? covering 260 CIOs across US, Europe and Asia ? said Cognizant had the highest wallet share of the IT spending dollars at 29% followed by Computer Sciences Associates (CSC) at 25% and Infosys at 20%. Other Indian IT majors TCS and Wipro had a share of 18% and 17%, respectively.
The wallet share gain is not a projection of the actual growth rate likely to be recorded by these IT vendors, but provides the direction of spending on them by various companies across the globe.
The Citi Research report said the budget spend continues to show improvement.
?Our survey of 260 CIOs across the US, Europe and Asia points to a modest budget growth in the US, Europe and Asia together for the first time since Q3CY11. Growth expectations for 2014 are in line with the overall 2013 growth and higher than 1HCY13,? it said.
This upward momentum is also reflected in the increased spending by companies on technology and related services, positively impacting outsourcers like Cognizant, Infosys, TCS and Wipro. The report said IT vendors had solid performance in the first quarter of 2014 with all 18 companies in the survey gaining share. ?This trend continues the Q4CY13 results where all vendors had a positive share gain in the quarter,? it said.
Cognizant has been the most aggressive among India-based IT services firms, having overtaken both Wipro and TCS in terms of overall revenue. The firm ended CY13 with a revenue of $8.8 billion, recording an annual growth of 20.4%. For 2014, it has projected revenue to be at least $10.3 billion, up at least 16.5% compared to 2013.
This survey also comes as positive news for the $86 billion Indian IT industry, which is projected to grow by 13-5% for FY15 with revenues touching close to $100 billion.
