Thursday, February 13, 2014

IT will grow faster next fiscal: Nasscom

MUMBAI: IT industry body Nasscom has forecast that Indian IT-BPM exports will grow 13%-15 % in 2014-15 to touch $97- $99 billion. It represents a possible rise from the 13% growth for this year (to $86 billion ), signaling an improved economic outlook and rise in global technology spending. 

Together with the domestic market, the sector is expected to touch $130 billion in revenue in 2014-15 , an addition of $13-14 billion over this year. (BPM or business process management is the term that Nasscom now uses for BPO or business process outsourcing ). 

Nasscom president R Chandrashekhar said that the global IT-BPO spending is projected to grow at 4.5% in 2014, outpacing global GDP growth of 3.7%. "The IT industry has remained a powerhouse because it is not stationary and has kept adapting to newer opportunities. While global sourcing is growing at twice the size of worldwide IT spends, the Indian IT industry's growth is even faster," he said. 

The domestic market this year however was a disappointment with revenues remaining flat at $32 billion. It's expected to grow by 9-12 % to Rs 1.25 lakh crore-Rs 1.28 lakh crore in 2014-15 , way below the projection for exports. "Slowdown in decision-making , rupee volatility and upcoming elections have impacted discretionary IT spending," Chandrashekhar said. 

He was speaking on the eve of Nasscom's flagship annual event, the India Leadership Forum (NILF) 2014. The threeday event begins on February 12, and will bring together over 1,000 companies and attract over 1,500 delegates from 31 countries. It's the 22nd edition of the event. 

Nasscom vice-chairman and executive vice-chairman of Cognizant R Chandrasekaran said the industry is well on track to meet its projection of clocking $300 billion in revenues by 2020. 

Nasscom said social, media, analytics, cloud (SMAC) technologies are reshaping businesses and this component is expected to contribute anywhere between 5-10 % of the sector's revenue. 

Krishnakumar Natarajan, chairman of Nasscom, said the entrepreneurial ecosystem would energize the next wave of growth. "With 1,200 startups emerging in the country, they are infusing energy and innovation across sectors including e-commerce, education and healthcare. India could become the global hub for digital transformation ," he said. 

The IT industry employee base is expected to cross 3 million with an addition of 1.66 lakh in 2013-14 . Women number 1 million. Nasscom said hiring has shifted from capacity to skill-oriented employment as companies focus on non-linear revenue models that make a business impact. 

Courtesy: Times of India

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