NASSCOM Says, Better Days Ahead

An improvement in the global economic environment and increase in the technology spend across the globe brought positive sentiments over Indian IT-BPM industry over last one year. The positive sentiments clearly seen from the IT-BPM growth of 13 per cent in FY2014 with a net addition of USD 10 billion to the overall IT-BPM industry in India. Currently, the Indian IT-BPM industry revenue stood at USD 118 billion and is expected to add further USD 13-14 billion to the existing industry size. However, the domestic IT-BPM industry continues to grow at 10 per cent below its guidance during FY2014, exhibiting subdued market sentiments on domestic front. The export revenue is expected to reach to USD 97-99 billion with an expected growth rate of 13-15 per cent in FY2015. The revenues from domestic IT-BPM industry is expected to grow to Rs 1250-1280 billion with a growth rate of 9-12 per cent during FY2015.

The economic revival in US and Europe helped in gradual increase of consumer confidence leading to rise of discretionary spending and translated to increased demand from the US and European markets. These positive sentiments have started translating into considerable increase in export orders from these geographies. The US market continues to be single largest market for Indian IT-BPM industry, contributing to 62 per cent of the total export revenue. Furthermore, the Europe market also showed revival in demand during FY2014 and is expected to grow at 14 per cent in the same period.

During FY2014, Indian IT-BPM industry sustained its growth trajectory. The industry continues to be one of the largest employers in the country and added direct employment for 3 million professionals and added over 160000 employees. FY2014 can be categorised by rapid evolution, expansion of verticals and geographic markets. Furthermore, the industry has attracted new customer segments and has offered a considerable amount of wide spectrum of solution.

In future times, the industry is expected to continue to see strong buyer confidence as almost 78 per cent decision makers showed confidence in planning for investment and growth in 2014. The global IT and BPM spending is projected to grow at 3.9 and 5.9 per cent, much faster pace in 2014, showing considerable increased contract volume for global sourcing. The Indian IT-BPM industry needs to operate on “Collaborate, Connect, Co-Create specifically tailored business models,” to further establish itself in global environment. Further, the disruptive technologies, digitisation and entrepreneurship will be the principal drivers for the industry in coming years. The industry revenues are expected to touch USD 130 billion in FY2015.

NASSCOM Chairman, Krishnakumar Natarajan 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. 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”.

NASSCOM President, R. Chandrashekhar shared his sentiments saying, “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”.

NASCOMM Vice Chairman, R. Chandrasekaran on the future of IT trends 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.”