Indian IT-BPO domestic market to grow by 15–18%, but exports to grow 4-7% in FY09-10: Nasscom

NASSCOM announced the findings of its annual survey on the performance of the Indian IT-BPO services sector for FY08-09 & outlook for FY09-10 on July 29, 2009.

According to the findings, the sector reached USD 58.8 billion in FY08-09 up from USD 52 billion in FY07-08. Export revenues for the Indian IT-BPO industry recorded growth of 16.3 percent and clocked revenues of USD 46.3 billion in FY08-09 up from USD 40.4 billion in FY07-08. The domestic segment grew by 21% to register revenues of INR 570 billion in FY08-09 from INR 470 billion in FY07-08.

Within the export segment, IT services have grown by 14.7% to clock revenues of USD 26.5 billion; BPO exports are up by 16.5% registering revenues of USD 12.7 billion. Engineering services and product exports clocked revenues of USD 7.1 billion, growing at 11% in FY 08 -09.

Mr. Pramod Bhasin, Chairman, NASSCOM said, “While growth was synonymous with industry performance in the past decade, resilience and efficiency was the thrust in the year 2008-09. In the face of a severe economic downturn in key markets, the industry was able to deliver a high growth of over 16 percent and retain its position as a strategic global sourcing destination. The industry also enhanced its thrust on building a globalised value chain, with a 35 percent increase in global delivery centers since 2007”.

FY 09-10 trends/estimates:-



• FY09-10 Export revenue projected to grow at ~4-7% to reach ~USD 48-50 billion

• Domestic IT-BPO market to reach ~INR 650-670 billion growing at ~ 15 – 18 %

• Core markets, North America and BFSI started to stabilize

• Decision making starting to happen – but buyers remain cautious; large deals missing

• Analysts continue to downgrade IT spending for 2009

• Q1 result of FY 09-10 demonstrate sustained focus with growth in operating margins and high utilization

Mr. Som Mittal, President, NASSCOM said, “A significant highlight of the year was the industry thrust to re-engineer itself to partner with its clients in testing times. Increase in fixed price contract, shift from onsite to offshore and end-to-end transformational deals helped the industry to get over 90 percent repeat business from its clients. At the same time, the thrust on diversification saw emerging verticals and geographies grow almost three times than the core markets”. The domestic market witnessed enhanced focus in FY 08-09, with large transformational deals in telecom and e-governance and contract value of outsourcing deals growing by 32%. Domestic BPO got a special boost with over 40 percent growth in this period.


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