Export revenues for the Indian IT-BPO industry are expected to grow by 5.5% to reach $49.7bn in FY 09-10, According to industry body Nasscom.
Nasscom said that the software and services exports revenues are expected to grow by 13-15% to $56-$57bn, and domestic revenues are estimated to grow by 15-17%, in FY 10-11. For the current fiscal, Nasscom expects domestic market to increase by 12% to reach INR662bn.
Pramod Bhasin, chairman of Nasscom, said: “The performance of the industry in this year is far stronger than what is reflected through the growth numbers. The industry has reinvented itself by increasing its cost efficiencies, utilisation rates, diversification into new verticals and markets and new business and pricing models. In the process, it was also able to turn itself into a business transformation enabler for its clients.”
According to Nasscom, the coming years are going to represent a significant shift in terms of business models, service lines, customers and talent structure and there will be increased focus on higher end offerings such as system integration, consulting, business intelligence, knowledge services and vertical specific BPO services.
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In addition, the industry is expected to generate an increasing share of revenues from the untapped SMB segment through improved pay per use business models and platform solutions.
Industry is expected to continue to be a net hirer with direct employment expected to grow by 4% and cross 2.3 million with over 90,000 jobs added in FY09-10, Nasscom said.
Som Mittal, president of Nasscom, said: “It’s a historic moment for the Indian IT-BPO industry as it touches the $50bn landmark. The growth was led by domestic market buoyed by increased government spending in IT. In addition, new areas such as engineering services and product development displayed phenomenal momentum clocking a combined revenue of over $10bn.”
