Indian IT-BPM Industry to earn revenues of USD 132 billion in FY2015 - NASSCOM
Mr. Krishnakumar Natarajan, Chairman, NASSCOM, said, “The world around us is rapidly changing, with socio economic, business and technological megatrends presenting an altered business landscape. Technology itself has journeyed from hardware, to enterprise software, to digital solutions becoming an integral part of every industry. This evolving landscape presents our industry with rapid growth prospects”. He further added that, “India is now becoming home to a new breed of startup companies focused on high growth areas such as mobility, e-commerce and other vertical specific solutions – creating new markets and driving innovation”.
“The need of the hour is to prioritize domains based on potential size, market readiness and the growing significance of policy evolution. Going forward the industry’s mantra will be to ‘Collaborate, Connect, Co-Create’ – offering specifically tailored model for each specialized domain in the IT-BPM sector. We are working towards enabling radical transformation of key sectors in India through use of ICT to reduce costs, increase access, enhance efficiency and enable innovation in the sector. Our industry has had a phenomenal journey in the past two decades growing from less than USD 100 million to a USD 100 billion plus sector and NASSCOM will look at garnering opportunities for the industry to further catalyze this phenomenal growth”, said Mr. R. Chandrashekhar, President, NASSCOM.
A gradual revival in consumer confidence leading to return of discretionary spending, and increased demand from US and Europe will help drive exports this year. While US continues to be the largest geographic market for India, accounting for 62%, the highlight for the year will be revival in demand from Europe, which is estimated to grow at 14% in FY14. Indian IT-BPM continues to remain the highest impact sector for India among all industries with the highest relative share in India’s GDP and exports among all services industries.
Mr. R. Chandrasekaran, Vice Chairman, NASSCOM said “The future looks exciting and positive as the IT-BPM industry is evolving dramatically in terms of scale and complexity. The sector will leverage collaboration, innovation, technology shifts and build a transformational agenda for India. It will create a market not only in India but globally that will serve as technology differentiator for customers shifting from cost to innovation. The sector will continue to impact India through job creation, foreign exchange, exports and position India as global IT-BPM partner.”
Way Forward – FY2015
Strong Buyer Confidence: 78% of decisions makers feel confident of planning for investment and growth in 2014
Global IT spending projected to grow faster in 2014- IT by 3.9 per cent, BPM by 5.9 per cent;
Increased contract volume for global sourcing
Industry revenues expected to reach USD 130 billion
Disruptive technologies, digitization and entrepreneurship to fuel growth
Future of industry- Collaborate, Connect, Co-Create specifically tailored business models
FY2014 – Review
Industry export’s estimated at USD 86bn - growth of 13 per cent
Domestic revenues were INR 1910 bn - growth of 9.7 per cent
Industry added 160,000 employees - direct employment – 3.1 million; indirect employment- 10 million
Despite challenges in the global market, Indian IT-BPM industry sustained its growth trajectory and is expected to clock export revenues of USD 86 billion with a Y-o-Y growth rate of 13 per cent. Domestic market also witnessed YoY growth rate of 10% taking the domestic revenues to INR 1150 billion. The Indian IT-BPM sector continues to be one of the largest employers in the country directly employing nearly 3 million professionals, adding over 160,000 employees. FY2014 can be characterized by rapid evolution, expansion of verticals and geographic markets, attracting new customer segments, and offering a considerably wider spectrum of solutions. Conclusion The 2020 vision of USD 300 billion will be driven by new business models, service lines and talent structures. Business models have been shifting from traditional labour-based onsite-offshore model to cloud-based and off–premise solutions. These changing models will bring compelling business innovations with greater breadth and specialization across key verticals - BFSI, telecom, healthcare, social entrepreneurship etc. To sustain growth in the coming years, the industry is going to focus on verticalization, operational excellence and expanding global delivery model.
(Source - Nasscom)
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