Sunday, November 25, 2007

Indian Switch Companies

While most IT companies of the west seem to grow at snail pace, Indian companies are growing at breakneck growth rates of 40-130. Most comapnies with higher base are growing a Healthy 40% rate and showing healthy growth rate in net profit in spite of growing pressure on margins due to an appreciating rupee and emergant challenge from China and other growth oriented Asian economies, and hense the growth of Big Blues are paled in comparison of Indian Switch Comapnies.

It also shows that companies can be grown just on the basis of organic growth and not on inorganic growth. Tech Mahindra is a company although small but grew its revenue 130% and its employee base by 90% in one year. It shows that organic growth is possible , and rapid scaling makes sense. Other bigger companies like Infosys and TCS have shown high employee scaling of upto 40% a year, but are now planning for growth through acquisition as talent is difficult to find.

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