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Sign of global recovery is within sight: NASSCOM

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CIOL Bureau
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BANGALORE, INDIA: As we are all set to welcome the new year, the signs of recovery from the global recession seem to be within sight, says NASSCOM, the premier trade body and the chamber of commerce of the IT software and services industry in India.

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“In the year 2009, for the first time in the industry’s history, the Indian IT sector logged in negative QoQ growth,” said a NASSCOM spokesperson. “The year was further embroiled with immense debate and introspection on the issue of corporate governance, triggered by the Satyam Computers financial fraud; and to credit the government quick reaction and efforts in constituting a new Board to salvage Satyam’s customers and retaining the company’s staff.”

The year also saw NASSCOM releasing its 'Perspective 2020' report, one that outlines opportunities and vision for the next decade.

“While there were debates on if downturn is the best time to talk of a long-term focus, the findings and focus of the Perspective 2020 report have gained widespread acceptance across stakeholders. Appropriately, 'Transform Business, Transform India' is the vision that has been adopted by NASSCOM and our members for the next decade,” the spokesperson added.

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According to NASSCOM, the revival in economy is expected to become visible earlier in India than the rest of the world. “As per NASSCOM’s projections for the current financial year, the IT industry is likely to grow at 4-7 per cent but starting from April next year we see double digit growth coming back,” he said.

Hiring trends are changing and we will see increase in hiring around niche skills and domain specialization accompanied by renewed focus on employee engagement, feels the industry body. “2010 will see a rise in hiring in the IT-BPO industry, accompanied by a renewed focus on employee engagement as organizations are looking at initiatives to strengthen the bond with employees. Companies will also look at expanding their manpower base and hire more domain experts with specialized skills.”

While US & UK continue to remain the core markets for India, we will also see an impetus on newer geographies and emerging markets, said NASSCOM.

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On the domestic front the Indian companies’ worked towards improving their cost efficiency and driving customer behavior. New business models emerged, as companies took the path of innovation attuning to customer needs and remain competitive.

According to NASSCOM, e-Governance will be in focus in 2010, as many pilot projects will go live. Government departments and organizations are expected to launch several e-Governance initiatives aimed at improving their interface with the citizens of the country and easing their day-to-day lives.

“Though the Budget 2009 was a little boost to the Indian IT Industry, we at NASSCOM are hopeful that budget 2010 will be supportive of the IT-BPO industry and create a regulatory climate which is even more conducive to doing business in and with India,” added the spokesperson.

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