Driven by strong export and acquisitive led growth strategy, IT companies are churning good performance.

The Indian IT industry continues to maintain its growth momentum. It was no surprise when the industry came out with sound performances in FY2006 as well. Indeed, FY2006 was yet another year of triumph and excitement, holding encouraging prospects for the years to come. The industry clocked a growth of 23%. s suggest that if the current momentum continues to hold pace, the industry would be very much on its way to touch the Rs. 247,000 cr (US$53.2 bn) mark by 2008. Already, the industry has emerged as the fourth largest in Asia-Pacific region.

Among the plethora of software companies, TCSIndia's largest IT companycame out with sterling performances. It churned out an annual income worth a whopping $3 bn. TCS also acquired 75% stakes in Swiss banking software and service provider TKS-Teknosoft SA for $80.5 mn. Infosys, which celebrates its 25th birth anniversary, this year, has not failed to pleasantly surprise the market either. Wipro at the second place recorded net sales of Rs. 10,203.79 cr going up 41.24% from its previous sales of Rs. 7,224.35 cr. It reported a profit margin of 19.8%. The company reckons that the rising compensation cost has pulled down its profit margin from last year's 21%. s raise doubts about the increased cost affecting the "lower price with better services" USP of Wipro. However, the company is optimistic about increasing its productivity to make up for its rising costs.

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