The National Association of Software and Service Companies (NASSCOM) has released a report on fiscal year (FY) 08 Revenue Performance and FY09 Forecast for the Indian IT Software and Services Sectors that clearly suggests the IT-BPO industry growth will slow down in 2009.
IT Examiner contacted about 15 IT and BPO companies operating in India to comprehend the industry’s viewpoint on the report. Declining to comment, these companies were tightlipped on the report as some are waiting for their Q2 results to come out. Some of these companies are even listed in the Nasscom list of top IT and BPO companies based on the records set in FY08.
The reasons may be many. The recent US recession is definitely taking a toll on the industry. But the companies have a taken a stance towards the European market which may prove Nasscom wrong.
According to the report, the industry will record a growth between 21-24 percent in the next FY which is far lower compared to the combined growth rate of 28.2 percent in the FY 2008 generating $52 billion. The FY08 has witnessed a steady growth from $39.6 billion in FY06-07.
The report also says that the export segment has recorded $ 23.1 billion scoring over the domestic segment by 2 percent. The BPO sector too has shown a steady growth by 30%.
Earlier speaking at the conference, Som Mittal, the President of NASSCOM said “The Indian IT-BPO industry’s resilience is reflected in its FY07-08 performance, with a 28.2% overall growth rate and next year’s projected growth between 21-24 percent. Given that we are well on our way to achieve the target of USD 60 billion in exports by FY09-10, the industry is now focusing on improving productivity, efficiency, as well as opening up new markets and services”.
He further added “The next decade offers opportunities and challenges which will require new business models and the industry dynamics will also see significant changes leading to a many new industry drivers and enablers, and we will need to prepare ourselves for these. NASSCOM is developing a long term vision for 2020, to chart out the roadmap for all stakeholders and help them tap into this opportunity”. X |