The company which has topped in improving its ranking is Aricent (formerly Flextronics Software Systems). It vaulted from the 18th to the 12th spot in a year, according to the Nasscom list.

Tech Mahindra [Get Quote] has moved up from the eighth largest exporter a year back to the sixth spot in FY07, according to the latest Nasscom Top 20 Software and Services Exporters Annual Ranking (2006-07).

Tier-II firms such as L&T Infotech, Polaris [Get Quote] Software, Hexaware Technologies [Get Quote], MphasiS and NIIT Technologies [Get Quote] have also improved their rankings. But the surprise inclusions in the list are Prithvi Information Solutions [Get Quote] and Birlasoft, which were not there in the list in the previous year.

Prithvi Information, an IT consulting company, founded in 1998, today has more than 80 clients from the Fortune 500. The company, headquartered in Hyderabad, registered $178.25 million last fiscal. It is listed on the BSE and the NSE with a market capitalisation of $150 million.

The rankings of Patni Computer Systems [Get Quote], i-flex solutions, i-Gate Global Solutions and Genpact have on the other hand gone down. Siemens Information Systems has maintained its previous ranking of 15.

"We see that the ranking reinforces services providers having specific focus on a geographic mix, services portfolios and increased focus on their strength. There are huge opportunities for every player, and broad-based and niche leaders will leverage innovation and greater focus to sustain in the long run in the fiercely competitive IT services sector," said Sabyasachi Satapathy, senior director of neoIT, a globalised services consulting firm.

Analysts say that companies such as Tech Mahindra and L&T Infotech have successfully run 'client of choice' initiatives, which provides them with long-term customer focus and deeper relationships.

Besides, when the competition is also from global players such as IBM, Accenture or EDS, companies which tend to lose out in the process of clinching multi-million dollar deals, need to revisit their focus in finding out the key differentiators, according to another analyst.

Industry sources, however, say that companies such as TCS, Infosys and Wipro have reached the next level where the competition is more with global firms than Indian companies.

"They are undisputed leaders in the domestic IT services market. They have mastered the art of global delivery by positioning themselves with their financial ability and technology, process and functional abilities," added an industry source.

However, there is a caveat in this ranking, as Nasscom itself admits. Some global biggies such as Accenture and IBM have apparently not participated. Intriguingly, Perot Systems, which had done so well earlier has also not joined this year. Had the biggies participated, the rankings would have been different.