Source: Business Standard
Despite challenging global environment, the Indian IT export revenues are expected to grow by 11-14% and domestic revenues will grow by 13-16% for FY13, said the National Association of Software and Services Companies (Nasscom).
The revenues for the Indian IT and BPO services company will cross the $100 billion mark this fiscal, said Nasscom. According to the Strategic Review report by Nasscom, the Indian IT exports accounted for $69 billion growing at 16.3% over the last fiscal.
For the year ahead, global technology spending is estimated at 4.5% and global sourcing is expected to be a major driver of technology spending. Nasscom estimates for FY12-13 factor in the uncertain economic environment with delayed decision making and differentiated growth across the industry sectors and companies. The outlook would be revisited later in the year when more data is available.
India retains its number one position as the world’s leading sourcing location for IT-BPO services, despite the rise of several alternative sourcing locations, with a share of over 58% in 2011. India-based resources are estimated to account for about 60-70% of the offshore delivery capacities across the leading multinational IT-BPO players.
“Indian IT-BPO firms have matured from being service providers to strategic partners to their customers – highlighting their importance in enabling growth of customer businesses. Verticalisation, operational excellence and an expanding global delivery model were internal priorities for the industry in this year. The domestic market for the last couple of years has been growing faster than the exports sector and would continue to be a key thrust area for the industry,” said Som Mittal, President, Nasscom.
Despite challenges in the global market conditions, India sustained its growth trajectory. Some of the other pivotal factors that have been contributing to this growth include new business models, organisation efficiencies, services around disruptive technologies such as cloud, mobility, analytics, social media, and flexible product portfolios and verticalised solutions.
“The industry performance this year demonstrated the sector’s ability to innovate and deliver differently in order to maintain the growth trajectory. The Indian IT companies are investing in building platforms and productised solutions to drive future growth opportunities. More importantly, the industry is expanding into newer geographies and verticals where the growth is 1.4 time that in the mature markets. Emergence of a vibrant start-up product ecosystem creating solutions for India and the world also enhanced the product opportunity for India,” said Rajendra Pawar, Chairman, Nasscom.