Industry emerges stronger from the global economic meltdown to post encouraging results
- Domestic market expected to witness 12 percent growth in FY09-10; to reach INR 662 billion
- Industry will continue to be a net hirer; direct employment expected to grow by 4 percent and cross 2.3 million with over 90,000 jobs added in FY09-10
- FY 10-11 outlook; Software and Services exports revenues to grow by 13-15 percent and domestic revenues to grow by 15-17 percent
Delhi, February 4, 2010: NASSCOM today released the Indian IT-BPO sector performance estimates for FY09-10. According to the findings, export revenues for the Indian IT-BPO industry are expected to record a growth of 5.5%, to reach USD 49.7 billion in FY 09-10.
Mr. Pramod Bhasin, Chairman NASSCOM and President & CEO, Genpact 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, utilization 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. With a renewed value proposition, we look forward to a terrific future with growth estimates of 13-15% in FY11 for the export sector and 15-17% for the India market.”
Mr. Som Mittal, President, NASSCOM said, “It’s a historic moment for the Indian IT-BPO industry as it touches the USD 50 billion 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 USD 10 billion.
With 450 delivery centers in 60 countries across the world, the industry has an unparalleled global value chain. The industry has also enhanced its global workforce, hiring specialized talent in developed markets and building a truly global delivery model.”
As per the findings, the coming years are going to represent a significant shift in terms of business models, service lines, customers and talent structure. There will be increased focus on higher end offerings such as system integration, consulting, business intelligence, knowledge services and vertical specific BPO services.
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. It is also expected to acquire domain expertise and near shoring capabilities to further advance India’s value proposition as a global outsourcing hub.
Annexure 1: Key highlights of the industry performance in FY 2009-10
Statistics for Reference:
NASSCOM® is the premier trade body of the IT software and services industry in India. Its focus is on ensuring the growth of the IT industry in India, on promoting the use of IT for economic and social benefit, and promoting global trade in IT.
NASSCOM has over 1200 members, of which about 250 are global companies from US, UK, EU and APAC countries. These include the biggest Indian and foreign IT companies, as also SMEs and even start-ups. They are in the business of software development, software services, software products, consulting services, R&D services, ITeS-BPO services, e-commerce and web services, engineering services and animation and gaming. NASSCOM’s member companies constitute over 95% of the Indian IT industry’s revenues in India and directly employ over 2.3 million professionals.
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