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On the back of growing clout of the Indian IT sector, domestic giants Tata Consultancy Services, Infosys and Wipro may soon join the league of top 10 most valued firms globally in terms of market capitalisation in the next 2-3 years.
Painting this rosy picture for the domestic IT space was none other than Wipro chairman and India's richest tech titan Azim Premji while speaking at the India Economic Summit in New Delhi on Tuesday.
"Currently, Infosys, TCS and Wipro come in the top 16-17 companies globally in terms of market capitalisation," he said.
We are growing three times faster than our foreign counterparts, so in the next 2-3 years, the difference will be very less, we will be in the league of top 10 companies, he added.
Earlier in September this year, global financial services major Morgan Stanley ranked the three Indian companies in top five firms in global IT services space.
Infosys was ranked even above US-based IT major Accenture, while all three Indian tech giants were placed above US-based EDS and Computer Sciences Corporation as well as European giants like Cap Gemini and Logica Plc in the market cap league.
The three majors are continuing their leading positions in the global IT services space on the basis of their current market values.
Infosys and Wipro have a market cap of $29 billion and $22 billion respectively based on their ADR prices.
While TCS has a market cap of around 25 billiion dollars based on its share price on the Bombay Stock Exchange, the most valued non-Indian IT services firm Accenture has a market cap of $27.4 billion, which is below that of Infosys.
However, in terms of turnover Accenture is far bigger than Infosys and other Indian companies, while US firms' lower market cap is also due to slower price-to-earnings ratio, analysts said.
This could be also attributed to Accenture's lower profitability and growth rates compared to the Indian companies, they added.