Contrary to IT service companies, numerous domestic IT engineering service firms, including entities within the Tata Group, are currently experiencing a predominant share of their revenues originating from non-American regions. Notably, Tata Elxsi and Tata Technologies have indicated that substantial portions of their earnings are derived from Europe and India.
Tata Elxsi, in its Q2 results, disclosed that Europe constituted the largest segment of its revenue, while Tata Technologies, as per filings with the Registrar of Companies, revealed that the majority of its revenues come from India, followed by Europe.
Engineering service firms such as KPIT, Cyient, and Axiscades also report significant proportions of their revenues from regions outside of the Americas. This stands in stark contrast to IT service giants like TCS, Infosys, HCLTech, and Wipro, all of which predominantly generate their revenues from the Americas.
During the July-September quarter, Tata Elxsi witnessed Europe surpassing the Americas to become its primary market. In the first half of the current fiscal year, Tata Technologies' revenue share from Europe accounted for 30% of its overall income, while the North American region contributed around 20%. Two years ago, North America constituted approximately 32% of its total revenue, with Europe representing 31%.
In Q2, Axiscades reported that 34.1% of its revenue came from North America (the US and Canada), while Europe's contribution to the revenue was 37.4%.
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