National Association of Software & Services Companies (Nasscom), the apex body of India’s information technology and business process outsourcing sectors (IT-BPO), on Wednesday said India’s share in the global outsourcing market rose to 55 percent in 2010 from 51 percent in 2009.
Som Mittal, president of Nasscom, said the demand for IT-BPO services, return of discretionary spending, new business models that boosted first-time buyers and reinvention of value proposition for existing ones drove the industry performance.
The industry body expects the IT-BPO sector revenue to grow 19 percent to $76 billion and estimated sector’s revenue to be 6.4 percent of the national GDP for the current fiscal 2010-11.
Exports are expected to grow 18.7 percent contributing $59 billion and IT services 22.7 percent. Domestic markets rose 16 percent to 787 billion rupees.
Banking, financial services and insurance (BFSI) verticals and US region accounted for the largest revenue growth. The growth rate for emerging verticals and new geographies will also be robust at 1.3 to 1.5 times of core segments, Nasscom said.
Direct employment within the IT-BPO sector is expected to grow by 10.4 per cent reaching 2.54 million, with over 240,000 jobs being added in fiscal year 2011.
The BPO sector, which was hit by delayed decision-making and deal restructuring in the first half, picked up momentum in the second half.
Nasscom said it expects the BPO export market to grow 14 percent to touch $14.1 billion helped by adoption of technology across government, corporate and small and medium businesses.
The industry body has projected a growth of 16 percent to 18 percent in software and services with revenue aggregating to between $68 billion and $70 billion for the next fiscal.
Nasscom expects the domestic market to grow by 15 percent to 17 percent with revenue of $20 billion for the next fiscal.
The engineering design and products development segment is expected to grow 13.4 percent and generate revenue of $11.3 billion in this fiscal driven by the increasing use of electronics, technology convergence and need for localized products.
Nasscom said the engineering services landscape in India now reflects maturity and diversification to partner with global corporations.
“As we step further, this decade heralds a new transformation for the industry. Transformative service delivery is always business focused, delivers confidence and manages risks, using modern business re-alignment; at the same time enabling sustained savings and value,” said Mittal.