NASSCOM scales down IT-BPO export forecast

BANGALORE, INDIA: In a revised forecast, the IT industry body NASSCOM has estimated the Indian IT-BPO industry's export revenue to grow at 4 to 7 per cent for the FY 2009-10, to reach $48-50 billion from $46.3 billion in FY08-09.

This is the third such revision by Nasscom in the past 12 months. Earlier in February, Nasscom had reduced IT exports growth target to 16 per cent from its forecast of 22-24 per cent made in mid-2008.

While announcing the the findings of its annual survey on the performance of the Indian IT-BPO services sector for FY08-09 and outlook for FY09-10, the industry body said that the export revenues in FY08-09 recorded a growth of 16.3 per cent, up from $40.4 billion in FY07-08.

Within the export segment, IT services grew by 14.7 per cent to clock revenues of $26.5 billion, while BPO exports were up by 16.5 per cent registering revenues of $12.7 billion. Engineering services and product exports clocked revenues of $7.1 billion, growing at 11 per cent in FY 08 -09.

The sector as a whole reached $58.8 billion in FY08-09, up from $52 billion in FY07-08, while the domestic segment grew by 21 per cent to register revenues of Rs. 570 billion in FY08-09 from Rs. 470 billion in FY07-08. The domestic market witnessed enhanced focus in FY 08-09, with large transformational deals in telecom and e-governance and contract value of outsourcing deals growing by 32 per cent, said a press release.

Pramod Bhasin, chairman, NASSCOM said, “While growth was synonymous with industry performance in the past decade, resilience and efficiency was the thrust in the year 2008-09. In the face of a severe economic downturn in key markets, the industry was able to deliver a high growth of over 16 per cent and retain its position as a strategic global sourcing destination. The industry also enhanced its thrust on building a globalized value chain, with a 35 percent increase in global delivery centers since 2007”.

Domestic BPO got a special boost with over 40 percent growth in this period, said the release. The worldwide IT spending growth is expected to decline in 2009 and 2010, it added.

Som Mittal, president, NASSCOM said, “A significant highlight of the year was the industry thrust to re-engineer itself to partner with its clients in testing times. Increase in fixed price contract, shift from onsite to offshore and end-to-end transformational deals helped the industry get over 90 per cent repeat business from its clients. At the same time, the thrust on diversification saw emerging verticals and geographies grow almost three times than the core markets”.

As a part of the survey, NASSCOM also released the annual rankings for the following categories, for FY08-09:

1. Top 20 IT Software and Service exporters in India

2. Top 15 BPO rankings

3. Top 20 IT-BPO employers in India.

Tata Consultancy Services topped first and third category, while Genpact India Pvt Ltd was the number 1 in BPO category.

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