Despite weak economies in key markets in Europe and United States, India’s internet technology industry continues to expand, they thank the domestic growth and a push into new regions like Africa and the Middle East. Expected revenues to cross $100 billion this financial year for India’s information technology and outsourcing industries. The National Association of Software and Services Companies. India’s technology industry association claims in the recent report that last year it increased 14.8 percent and doubled in 2007. Revenues will reach $225 billion by 2020 predicted by the group which has more than 1,200 corporate members.
According to Rajendra Pawar, Chairman of NASSCOM, that there has been consistent growth in the domestic IT market. The reports said, Total revenues in the sector will reach $101 billion in the year that ends March 31, 2012. From 16.5 percent to $32 billion is the expected growth in the domestic market. Work done for clients and exports apart from India, will make up $69 billion of that figure. NASSCOM officials said, that a rise in global technology spending is also a key factor behind the industry’s increase. Som Mittal, President of NASSCOM stated that it becomes necessary to adapt and move quickly, companies are not being conservative on the transformation aspect of their spending, 4.5 percent in the current fiscal year spent by information technology, they need to aggressively adapt to new technologies.
Mr. Pawar noted that the last decade has been turbulent but still the industry grew nine times by revenues. Clients are seeking service providers who specialize in their field and provide customized solutions, there are a lot of new young companies that are collectively contributing about two billion of the hundred billion. NASSCOM said that Indian information technologies offers existing customers new services, New business is coming from new geographies like Eastern Europe, while previously a majority of the industries revenues came from Britain and United States.
The number of foreigners in the industry has grown significantly as of this year, some 40,000 employees are not Indian. India’s outsourcing industries and information technology continue to be one of the largest employers in the country. In the current fiscal year over 230,000 jobs were added, it brings about 2.8 million people total direct employment. India’s league of experienced talent is running dry that’s why they are also hiring foreigners and Indian information technology companies makes acquisitions abroad and expand overseas. Mr. Mittal said, experienced personnel are not easily available, there is enough entry-level talent to support the industry’s 16 to 20 percent annual growth.
Currency is too complex for companies to factor in as off now, we know that the cash problems are mostly in government and not in companies, however, the Euro zone problem is big enough that it will affect companies, Mr Pawar claims. Fred Giron said that the economic crisis in Europe means less growth for the Indian industry and that price wars could be on the agenda if the Rupee continues to remain weak.
By 2020, the industry is heavily dependent on domestic spending, NASSCOM forecast of $225 billion in revenues. About $50 billion of the $225 billion will come from the companies in India. Most work is currently located in the top six cities in India. Mittal also said that they also set to improve the business environment so that it can attract more foreign investors.
REFERENCES:
http://www.blackmereconsulting.com/fast-growth-for-india%E2%80%99s-outsourcing-industry-despite-weak-global-economy-new-york-times
http://news.gkrom.com/articles/india-ink-fast-growth-for-indias-outsourcing-industry-despite-weak-global-economy
