Advertisment

'IT-BPO exports to grow by 16-18 p.c in FY12'

author-image
CIOL Bureau
New Update

MUMBAI, INDIA: The Indian IT-BPO industry would grow around 16-18 per cent, said Nasscom president Som Mittal, in Mumbai today.

Advertisment

Addressing the media here ahead of the Nasscom Leadership Forum 2011 to be inaugurated on Tuesday, Som Mittal said, “Last year, the industry reported a growth around 18.7 per cent in the exports which included 22.7 per cent growth in IT services and 14 per cent in BPO. While we had slower growth in previous years,  we expect the growth to be around 16-18 per cent for FY 2012.”

He added, “There would be demographic shift fueling the growth in new sectors, markets and service lines. Around 80 per cent of growth will be driven from outside the core markets, verticals and customer segment. The companies would look beyond Fortune 500 to small and mid-size businesses.”

According to Nasscom, the addressable market would triple from current $500 billion to $1.5-1.6 trillion by 2020, the export component of Indian industry is expected to grow three fold and would reach $175 billion in revenues by 2020. The companies are looking are talent in tier 2 and 3 cities.

Advertisment

Harsh Mangalik, chairman-Nasscom and chairman and geography managing director for Accenture India, said, “Around 50 per cent of the manpower hails from beyond the tier-1 cities. Around 40-45 per cent of the net new jobs (direct /indirect)  in the metros are enabled by IT sector.”

According to Som Mittal, market shifts will lead to emergence of new products and services. Cloud will foster environment of innovation created by entrepreneurs. He added that the companies would work on new services to stay competition. The driver of innovation would be IP-lead solutions and solution for developing markets like India.

He added that geographies like Continental Europe, Latin America and Middle East are the growth prospects, while in verticals healthcare, utility and public sector holds the scope. There would be new trade blocks, where growing markets like India and China would play a major role. He concluded that the new mantra for the industries would be innovate, redesign and reinvent.

tech-news