India-based ICT outsourcers in NZ make progress in 2020
- 12 October, 2020 14:30
The trio of India-based ICT outsourcing companies with significant operations in New Zealand continued to grow in 2020, even before HCL's win at dairy giant Fonterra registered.
Infosys, which has reportedly picked up significant business from Vodafone NZ, reported sales of $36.9 million for the year to the end of 31 March, up from $29.5 million in 2019.
Profit before tax was $3 million, up from $2 million, though profit after tax was only marginally up to $1.6 million from $1.4 million.
Tech Mahindra also advanced, from $19.9 million in revenue to $26.3 million.
HCL, reporting for the same period and before a large infrastructure management win at Fonterra could have delivered significant revenue, actually went backwards, from $40 million revenue in 2019 to $35.9 million in 2020.
HCL's net profit also fell, from $2.1 million to $1.7 million.
Tata Consultancy Services does not appear to lodge local accounts.
In a recent Techweek event country manager Rohit Anand said the company had around 20 local clients including the NZ Stock Exchange. Tata has delivered the NZX's Bancs clearing house system since 2007.
The four companies all arrived in New Zealand over a decade ago, initially challenging with outsourced services and development but moving steadily up-market over the years to offer infrastructure as a service, cloud, consulting and transformation services among other offerings.
While HCL accelerated into the lead in revenue terms in 2016 and 2017, declining revenue since then has seen it pipped by Infosys in 2020 (see chart below).
However, HCL's new Fonterra deal, which is said to be worth around $20 million a year, appears likely to put the company back on top in revenue terms in the current financial year.
The total quantum of revenue claimed by the three that report local results also approached a five-year high of $99.2 million in 2020, just a fraction behind 2018's $99.4 million (see chart below).
To put that in perspective, New Zealand's largest ICT services business, Datacom, reported $1.34 billion in revenue for the year ended 31 March, 2020.
Subtracting Australian revenues of A$589.7 million (around NZ$620 million at an average exchange rate of A95 cents in the dollar) puts Datacom's New Zealand revenue at around $720 million.