India's IT-BPO exports to touch $50 bn by March '10

NEW DELHI, INDIA: Raising hopes that the industry is emerging stronger from the global economic meltdown, to post encouraging results, India's software and services industry body NASSCOM today said that exports in IT/BPO industry is expected to rise 5.5 per cent in the current financial to $49.7 billion.

According to NASSCOM's Indian IT-BPO sector performance estimates for FY09-10, domestic market is expected to witness 12 per cent growth in FY09-10; to reach Rs 662 billion.

The report said government IT spend, estimated at Rs 150 billion in 2009, is expected to reach Rs 250 billion by 2011.

According to Pramod Bhasin, Chairman NASSCOM and president & CEO, Genpact, the performance of the industry in this year is far stronger than what is reflected through the growth numbers.

“The industry has reinvented itself by increasing its cost efficiencies, utilization rates, diversification into new verticals and markets and new business and pricing models,” said Bhasin, adding, “In the process, it was also able to turn itself into a business transformation enabler for its clients. With a renewed value proposition, we look forward to a terrific future with growth estimates of 13-15 per cent in FY11 for the export sector and 15-17 per cent for the India market.”

In the IT/BPO vertical APAC is the fastest growing geography with an estimated growth of 10 per cent and Indian IT-BPO industry continues to dominate the global market place with 51 per cent market share.

The sector's export growth had slowed to 16 per cent in 2008/09 from more than 20 per cent in previous years.

Growth in emerging verticals such as retail and healthcare is three times faster than core verticals, the report added. Infrastructure services will be a key growth driver for the industry with an estimated growth of 10.5 per cent.

NASSCOM observed that IT/BPO sector will continue to be a net hirer and the direct employment is expected to grow by 4 per cent and cross 2.3 million with over 90,000 jobs added in the current financial year.

Som Mittal, President, NASSCOM said it is a historic moment for the Indian IT-BPO industry as it touches the US$ 50 billion landmark.

“The growth was led by domestic market buoyed by increased Government spending in IT. In addition, new areas such as Engineering Services and Product Development displayed phenomenal momentum clocking a combined revenue of over USD 10 billion,” he said. “With 450 delivery centers in 60 countries across the world, the industry has an unparalleled global value chain.”

According to NASSCOM, there is US$ 9 billion business opportunity in e-Governance.