Revenue from telecom verticals is unlikely to be impacted significantly for Indian IT companies

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with Gartner pegging the revenue growth in the sector at $1,740 billion for the year 2012 compared with $1,701 billion last year.

However, Gartner estimated that growth in telecom spends would be slower at 2.3 per cent against 6.1 per cent last year.

Both Infosys and Wipro saw a fall in their revenue from telecom vertical during the last one year.

Telecom software company Subex Systems founder Subhash Menon said: “I can’t say about IT companies as a whole. But we are seeing a good growth in our sector. The industry (telecom software) is growing at a growth of 9 per cent and we are growing at 15 per cent. We are not into equipments but in telecom software”. The annual financial report of Subex for the year 2010-11 reads, “Subex is fully dependant on the telecom industry. As such, vagaries in the telecom business will considerably impact the fortunes of the company”.

Infosys’ revenue from telecom vertical was about 10.4 per cent in quarter ended September 2011-12, down from 13.3 per cent of corresponding quarter of 2010-11. Wipro’s revenue under its “global media and telecom” vertical was 15.7 per cent for the second quarter of 2011-12, down from 16.9 per cent of the corresponding quarter of 2010-11.