BANGALORE, INDIA: India's $100-billion IT industry in 2012 saw the emergence of new companies to serve global and local markets and sustained growth, despite tough business conditions.
For the bellwethers, the year was a turbulent one with Infosys and Wipro struggling to stay afloat while numero uno TCS withered headwinds to stay ahead even as distant competitor Cognizant challenged their dominance.
The industry sustained its growth trajectory despite technology challenges and tough market conditions by adopting new business models, driving organisational efficiencies and offering a host of new services around cloud, mobility, analytics, social media and collaboration in a multi-device connected world.
"European debt crisis, change of guard in China, US presidential elections and slowdown in world economy, including India, have affected the industry's growth rate as discretionary spending and investments for expansion or innovation have been put on hold," said a top industry representative.
Implementing lessons learnt from previous cycles of ups and downs, especially during the tech meltdown in 2008-10, the industry and especially its bellwethers have consolidated operations, forayed into new domains and diversified service offerings to create multiple revenue streams in traditional and emerging markets.
"A paradigm shift in technology trends and application is leading to emergence of new companies from India to serve global and local markets," Som Mittal, National Association of Software and Services Companies (Nasscom) president, told IANS.
"The domestic market is also witnessing increasing technology adoption in the government sector and the small and medium enterprise (SME) sector for efficient and faster delivery of services and products."
The domestic market is expected to grow 13-16 percent this fiscal as against 17 percent last fiscal to Rs.91,800 crore (Rs.918 billion) from Rs.78,600 crore (Rs.786 billion) in 2010-11.
Software exports are expected to grow 11 percent this fiscal to $77 billion despite currency volatility from $69 billion in 2011-12, according Nasscom.
The year has, however, been most challenging to global software majors Infosys and Wipro, which have gone through a change in top management and facing the heat of competition from global peers, including TCS and US-based non-resident Indians (NRIs) funded Cognizant Technology Solutions Corporation.
khare Tue Jan 1 at 06:44 PM
infosys & wipro are no longer the bellwethers. infosys & wipro are notorious for salary issue. infact infosys saves 8 months of variable pay every year per employee since the official offer letter will say the variable pay is "per month" however it is paid only per quarter and mind U no arrears are paid too. it is very comfortable forgotten. infosys & wipro have a RFX win to lose ratio of 1:5 so we know where the 80% of projects are going TCS & cognizant and others.