India's IT exports to grow by 12-14% in FY '14: NASSCOM
Increase in global technology spending and opportunities created through adoption of disruptive technologies are expected to propel growth in FY2014 for India, reveals The National Association of Software and Services Companies (NASSCOM), today ahead of the NASSCOM Annual India Leadership Forum to be held in Mumbai.
NASSCOM expects the industry to clock export revenues of $84-87 billion maintaining a growth rate of 12-14 per cent. Domestic revenues will also grow at a rate of 13-15 per cent and are expected to reach Rs 1180-1200 billion.
Changing business models, emergence of new technologies, buyer segments and solutions for emerging markets will help India retain its position as the global sourcing leader and an emerging trustworthy innovation hub. This and many other trends were revealed at the NASSCOM Strategic Review 2013.
“The Indian IT-BPM industry has demonstrated resilience and agility in the past year. Technology has today become an integral enabler for growth across all sectors and the industry is continuously evolving and innovating to emerge as a strategic partner to its customers. The thrust is IP led solutions served over multiple platforms that has the customer at the centre of every module, and is transformative in nature,” said N Chandrasekaran, Chairman, NASSCOM.
Some of the key growth drivers that are expected to open new opportunities for the industry are smart computing, ‘anything’-as-a-service, technology enablement in emerging verticals and the SMB market.
“Technology can also play a critical role in enabling transformation in India and add to India’s GDP. The domestic market in India is maturing, it was the fastest growing market in the year and NASSCOM will look to partner with the government in enhancing technology adoption in the country”, said Som Mittal, President, NASSCOM.
India is the only country that offers the depth and breadth of offerings across different segment of this industry – IT Services, BPM, engineering and R&D, Internet and mobility and software products. IT Services is a $50 billion sector, BPM is a $20 billion sector, Engineering crossed $10 billion and Software products, Internet & Mobility are emerging opportunities. Today, existing and new companies are expanding their offerings to build India as the hub for analytics, mobility, cloud, social collaboration and emerging verticals like healthcare and medical devices.
“The rapid adoption of Internet and mobile is creating enormous opportunities for entrepreneurship in the country. A growing ecosystem of early stage funding, incubation and peer learning is creating innovative start-ups building technology solutions and products for India and the global market. Initiatives like creating a strong and robust ecosystem for start-ups, innovation clusters and centres of excellence (CoEs) will encourage entrepreneurship and build the next generation of Global companies from India,” said Krishnakumar Natarajan, Vice Chairman, NASSCOM.
FY2013 – Review
Despite challenges in the global market, Indian IT-BPM industry sustained its growth trajectory and is expected to clock export revenues of $75.8 billion with a Y-o-Y growth rate of 10.2 per cent. Domestic market also witnessed Y-o-Y growth rate of 14.1 per cent taking the domestic revenues to Rs 1,047 billion.
The IT-BPM sector continues to be one of the largest employers in the country directly employing nearly 3 million professionals, adding over 180,000 employees. FY2013 can be characterized as the year of rapid transition and transformation leading the industry into expanding into newer verticals and geographies, attracting new customer segments, and transforming from technology partners to strategic business partners.
Europe despite the economic crisis, demonstrated higher acceptance of global sourcing with markets such as Germany or France increasing outsourcing as a way to keep their costs under control and gain greater flexibility in light of the increasingly volatile markets in the Euro Zone and beyond. At the same time, the industry explored increasing opportunities in Asia, Africa and Latin America. Customer centricity was the key focus as the industry expanded its global delivery model accounting for 580 global centres across 75 countries.
While the first $100 billion landmark can be attributed to the cost and quality advantage, the next $100 billion will be a combination of higher-value services and increasing non-linear growth. To sustain this growth, Indian IT-BPM industry is focusing on greater efficiencies, verticalized structures, geographical presence, IP based solutions, domain and increased collaboration across all stakeholders.
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