New Delhi, February 10, 2012: The National Association of Software and Services Companies (NASSCOM) has released the key findings of its study of the Indian IT-BPO sector performance for the fiscal year 2011-12.
The year is a landmark as aggregate revenue for the Indian IT-BPO sector is estimated to cross US$ 101 billion. Exports accounted for $69 billion, growing by 16.3 percent over the last fiscal year. Despite challenges in the global market conditions, India sustained its growth trajectory. Some of the factors that contributed to this growth include new business models, organization efficiencies, services around disruptive technologies such as cloud, mobility, analytics, social media, and flexible product portfolios and verticalized solutions. For fiscal 2013, the export revenues are expected to grow by 11-14 per cent while the domestic revenues will grow by 13-16 percent.
The IT-BPO sector continues to be one of the largest employers in the country directly employing some 2.8 million professionals, with over 230,000 jobs being added in FY2012.
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Highlights
India’s share in global sourcing - 58 percent in 2011, up from 55 percent in 2010.
Exports (excluding Hardware) to be at ~USD 69 billion; growth of 16.3 percent.
Domestic (excluding Hardware) to be at ~INR 787 billion; growth of 16.7 percent.
FY2013 Outlook: Export revenues to grow by 11-14 per cent; Domestic to grow by 13-16 percent.
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Rajendra Pawar, Chairman, NASSCOM, says, “The industry performance this year demonstrated the sector’s ability to innovate and deliver differently in order to maintain the growth trajectory. The Indian IT companies are investing in building platforms and productised solutions to drive future growth opportunities. More importantly, the industry is expanding into newer geographies and verticals where the growth is 1.4 time that in the mature markets. Emergence of a vibrant start-up product ecosystem creating solutions for India and the world also enhanced the product opportunity for India.”
Adds Som Mittal, President, NASSCOM, said, “Indian IT-BPO firms have matured from being service providers to strategic partners to their customers – highlighting their importance in enabling growth of customer businesses. Verticalisation, operational excellence and an expanding global delivery model were internal priorities for the industry in this year. The domestic market for the last couple of years has been growing faster than the exports sector and would continue to be a key thrust area for the industry”.
India retains its number one position as the world’s leading sourcing location for IT-BPO services, despite the rise of several alternative sourcing locations, with a share of over 58 percent in 2011. India-based resources are estimated to account for about 60-70 percent of the offshore delivery capacities across the leading multinational IT-BPO players.
For the year ahead, global technology spending is estimated at 4.5 percent and global sourcing is expected to be a major driver of technology spending. NASSCOM estimates for FY2012-13 factor in the uncertain economic environment with delayed decision making and differentiated growth across the industry sectors and companies. The outlook would be revisited later in the year when more data is available.
www.nasscom.in