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Top IT Spenders - BFSI and PSUs dominate the Top IT spenders list

Public sector units and the banks dominate the list of It spenders in India. Almost half of the top 50 list of IT spenders are the BFSI and the PSU companies according to a recent published list of top 500 IT spenders in India by Prognosys e Services. ONGC with its annual IT spending of USD 275 M is way ahead of other corporate in the country. Reliance Industries although spends USD 100 M on IT annually, but is less than half of what is being spent on IT by ONGC. L&T, BSNL and SBI are the other three among the top five IT spenders in India. 

All the original Navratna under the heavy engineering ministry figures among the top 100 IT spenders in India. ONGC which is the highest spender on IT in India is followed by IOCL, GAIL, BPCL, SAIL, BHEL, NTPC and HPCL. Other major PSUs which figure among the top IT spenders in India are Shipping Corporation of India, Power Grid Corporation, Bharat Electronics, NALCO and Hindustan Aeronautics Ltd.

 

Telecom and IT & ITES are the other most prominent vertical which is among the top IT spenders in India. All the telecom giants BSNL, Bharti, Hutch, Reliance, VSNL, Idea and MTNL figure among the top 100 IT spenders in India. All the major IT and ITES company figure among the top IT spenders in India. TCS leads the pack of the top IT spender among the IT & ITES companies in India. Other IT&ITES companies figuring among the top IT spenders list in India are Aricent, Infosys, Wipro, HCl, iGate, Sasken, Zensar, Cognizant etc.

 

BFSI and Energy companies are the highest to spend on IT as a percentage of their revenue. Both the verticals spend more than one and half percent of their sales revenue on IT as compared to the overall average of 0.7%. Manufacturing companies spend the least on IT as a percentage of their top line. IT spent per employee is also the least among the manufacturing companies whereas IT spending per employee is the highest among the R&D companies.

 

44% of the total IT spending made by the top 500 companies in India is on hardware whereas rest of the spending is almost equally shared among software and services. There has been a significant rise in the infrastructure outsourcing deals resulting in high share of services in the overall IT spending. In fact more than half of the total services spending is made on Infrastructure management services. System and Network Integration services contribute around 30% of the services spending whereas IT consulting and other services constitute the rest of the services spending among the top 500 IT spenders in India.

 

Computing infrastructure which includes Desktop, Laptops, Thin Clients, Workstations and servers contribute to 61% of the total hardware spending out of which server alone constitute 18%. 11% of the total hardware spending is made on storage where as networking contributes to 14% of the total hardware spending done by the top 500 companies in India. Rest of the hardware spending is made on basicIT infrastructure and other peripherals.

 

On the software front application and middleware constitute more than 50% of the total spending with middleware contributing to 23% of the total spending on software. 45% of the software spending by the top It spenders in India is done on infrastructure software.