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Software: Retailís the way to go - Views on News from Equitymaster
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Software: Retailís the way to go
Jul 4, 2007

Indian IT companies traditionally have been focusing on the banking, financial services and insurance (BFSI) vertical as their key source of revenue. Even though the vertical has relatively lower margins when compared with others like telecom and life sciences and healthcare, it compensates these companies with higher volumes and steady billing rates. But with competition heating up among the companies in this space, we believe that there is a need to focus to those verticals where the presence of technology has not been that strong and also in those markets which has been relatively unpenetrated. One such vertical is Ďretailí. In this article we try to focus on the opportunities, which the retail industry will throw up going forward for the Indian IT companies.

Revenue share of industry verticals
Banking, Financial Services and Insurance 42.2%
Telecom 17.0%
Manufacturing 15.3%
Retail and Distribution 7.1%
Life Sciences and Healthcare 4.3%
Transportation 3.2%
Energy and Utilities 2.4%
Others 8.5%
Total 100.0%

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