Bangalore, Feb 4 (Inditop.com) The resilient Indian information technology (IT) and business process outsourcing (BPO) industry will earn $50 billion (Rs.231 billion/Rs.23,100 crore) in exports by end of this fiscal, posting 5.5 percent year-on-year (YoY) growth, the industry body said Thursday.
“The Indian IT-BPO industry has emerged stronger from the global economic meltdown and is expected to post encouraging results for this fiscal, with $50 billion in exports alone,” said Pramod Bhasin, president of National Association of Software and Services Companies (Nasscom) in a statement.
Similarly, the domestic IT-BPO market is set to witness 12 percent YoY growth to post Rs.662 billion (Rs.66,200 crore).
In 2008-09, export earnings stood at $47 billion and revenue from the domestic market was Rs.590 billion (Rs.59,000 crore).
With the worst behind and the industry on the recovery path, Nasscom has projected $56-57 billion or 13-15 percent YoY growth in export revenues and Rs.768 billion (Rs.76,800 crore) or 15-17 percent YoY growth in domestic revenues in 2010-11.
As a net hirer, direct employment in the IT-BPO industry will cross 2.3 million, with about 90,000 jobs added this fiscal, projecting a growth of four percent YoY.
“The industry has reinvented by increasing cost efficiencies, utilisation rates, diversification into new verticals and markets and new business and pricing models,” said Bhasin, who is also chief executive of back-office operations firm Genpact.
“The industry will make a significant shift in business models, service lines, customers and talent structure to sustain the robust growth,” he added.
With 450 delivery centres in 60 countries the world over, the Indian IT-BPO industry has an unparalleled global value chain. The industry also enhanced its global workforce, hiring specialised talent in developed markets and building a truly global delivery model.
“It’s a historic moment for the Indian IT-BPO industry as it touches the $50-billion landmark. The growth was led by domestic market buoyed by increased government spending in IT,” Nasscom president Som Mittal said in the statement.
New verticals such as engineering services and product development gathered momentum to post combined revenue of about $10 billion.
Government IT spend is estimated to reach Rs.250 billion in 2010-11 (Rs.25,000 crore) from Rs.150 billion (Rs.15,000 crore) in 2009-10, including Rs.41.4 billion (Rs.41,400 crore) in e-governance alone.
“The Indian IT-BPO industry continues to dominate the global market place with 51 percent market share, with retail and healthcare growing three times faster than core or traditional verticals,” Mittal noted.
With a share of 5.9 percent in the country’s gross domestic product (GDP), the IT industry accounted for 25 percent of total exports last fiscal.
Similarly, the industry contributes around 11 percent to the services sector.
The industry will also have an increased focus on higher-end offerings such as system integration, consulting, business intelligence, knowledge services and vertical specific back-office services.
