Nasscom sees better times in FY15, projects 15% IT growth

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IT, BPO industry expected to add $14 billion in revenues

The exports from the Indian IT and BPM sector are poised to see a 13-15 per cent growth in the coming fiscal year 2014-15 as the global economic recovery and higher spend on technology would help Indian IT firms to focus abroad when the domestic market has not improved as expected. Nasscom in its annual predictions for the industry said the IT and BPM sector is expected to add overall revenues of $13-$14 billion to the existing industry revenues of $118 billion. While the export revenues for fiscal 2015 are projected to grow by 13-15 per cent to reach $97-$99 billion.

“The domestic revenues for the same period will grow at a rate of 9-12 per cent and is expected to reach between 1,25,000 crore to 1,28,000 crore during this year. In the fiscal year 2014, domestic market has grown at 10 per cent which was below the target of 13 per cent,” said Krishnakumar Natarajan, chairman of Nasscom. The national body believes a gradual revival in consumer confidence leading to return of discretionary spending, and increased demand from US and Europe will help drive exports this year. “While US continue to be the largest geographic market for India, accounting for 62 per cent, the highlight for the year will be revival in demand from Europe, which is estimated to grow at 14 per cent in FY14. Indian IT-BPM continues to remain the highest impact sector for India among all industries with the highest relative share in India’s GDP and exports among all services industries,” said Natarajan.

The need of the hour is to prioritise domains based on potential size, market readiness and the growing significance of policy evolution. Going forward the industry’s mantra will be to ‘collaborate, connect, co-create’. “Our industry has had a phenomenal journey in the past two decades growing from less than $100 million to a $100 billion plus sector and Nasscom will look at garnering opportunities for the industry to further catalyze this phenomenal growth, said R Chandrashekhar, president, Nasscom.

Nasscom says the 2020 vision of $300 billion will be driven by new business models, service lines and talent structures. “These changing models will bring compelling business innovations with greater breadth and specialisation across key verticals - BFSI, telecom, healthcare, and social entrepreneurship. To sustain growth in the coming years, the industry is going to focus on verticalisation, operational excellence and expanding global delivery model,” he said.

vikassrivastav@mydigitalfc.com

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