Tata Consultancy Services (TCS), Infosys Technologies and Wipro Technologies, jointly known as ‘India-3’, will grow as the next generation of IT service megavendors, said Gartner, Inc.

According to a study commissioned by Gartner, these vendors are increasingly winning significant deals and will steadily replace the current megavendors by revenue- IBM Global Services, Accenture and EDS - in this arena by 2011.

Gartner further added that the three vendors have overcome four challenges, to be able to attain the status of upcoming megavendors, them being - process excellence; world-class HR practices; providing high quality services at a low cost; the achievement of significant and disproportionate ‘mind share’ compared to their actual size.

However, the Indian providers will have to achieve similar (to the current megavendors) levels of revenue per employee benchmarks to truly achieve megavendor status. They will have to attend to the issue of moving away from resource-intensive revenue growth to a model that provides higher leverage and increases revenue without a linear relationship to head count, which is the situation that exists today.

“There are strong indicators that ‘India-3’ (TCS, Infosys and Wipro) will be the next megavendors in IT services. However, to achieve this, the current standing of the India-3 will need to expand quickly to keep pace with the changing client environment for IT delivery in the future,” said Partha Iyengar, vice president, analyst and regional research director, Gartner.