Domestic market to lead IT growth
The Hindu Business Line, July 30, 2009, Page 4
Nasscom projects 15-18% rise; core export markets stabilising.
Our Bureau, Chennai
The domestic market seems to be coming to the aid of the IT-BPO industry, because it is projected to grow 15-18 per cent, even as the export market is likely to grow a mere 4-7 per cent.
For sure, the export market is about thrice as much as the domestic market, but in a slowdown, anything helps.
Export revenues
The Hindu Business Line, July 30, 2009, Page 4
Nasscom projects 15-18% rise; core export markets stabilising.
Our Bureau, Chennai
The domestic market seems to be coming to the aid of the IT-BPO industry, because it is projected to grow 15-18 per cent, even as the export market is likely to grow a mere 4-7 per cent.
For sure, the export market is about thrice as much as the domestic market, but in a slowdown, anything helps.
Export revenues
The National Association of Software and Services Companies (Nasscom) on Wednesday said that the industry’s exports are expected to grow to between $48 billion and $50 billion, compared with $46.3 billion last year.
Last year, the industry’s export revenues grew 16.3 per cent, says Nasscom, but calculations show only a 14.6 per cent growth, from $40.4 billion in the previous year.
The root of the discrepancy lies in reckoning of Satyam Computer’s accounts, which are yet to be restated.
Disclosing Nasscom’s projections at the body’s annual meet here, the Chairman, Mr Pramod Bhasin, stressed that even a 4-7 per cent growth is good, given the economic environment.
He noted that core markets such as North America and verticals such as the banking and financial services industry “have started to stabilise”.
The domestic IT-BPO market is projected to grow at a higher rate — between 15 and 18 per cent — to reach around Rs 67,000 crore, compared with Rs 57,000 crore last year.
In dollar terms, domestic revenues were $12.5 billion in FY-09, Nasscom said.
Fiscal 2009 figures grew 21 per cent over Rs 47,000 crore in fiscal 2008.
The domestic market witnessed enhanced focus in the year ended March 2009 with “large transformational deals in telecom and e-governance, with contract value of outsourcing deals growing by 32 per cent, Mr Bhasin told newspersons after releasing the Nasscom outlook for the industry in 2009-10.
Growth break-up
Within the export segment, IT services have grown in FY-09 by 14.7 per cent to $26.5 billion; BPO exports are up by 16.5 per cent to $12.7 billion; engineering services and product exports up 11 per cent to $7.1 billion.
The industry employed nearly 2.2 million in 2009 fiscal, adding about 200,000 jobs in the fiscal year ended March 2009 (FY09).
In the previous year, the industry added between 250,000 and 300,000, according to Mr Som Mittal, President, Nasscom. In February 2009, Nasscom had said that the industry might add, aided by job offers at campuses, a net of one lakh jobs in FY10. TCS, for instance, has made 24,500 campus offers for this year.
Mr Pramod Bhasin, Chairman of Nasscom and CEO, Genpact said, “The demand will be there for people, but the focus would be on quality. The industry has spent a lot over the years in training, and this trend may not continue over time."
"It is time that the government and educational institutions spend more time on training and education,” he said.
Last year, the industry’s export revenues grew 16.3 per cent, says Nasscom, but calculations show only a 14.6 per cent growth, from $40.4 billion in the previous year.
The root of the discrepancy lies in reckoning of Satyam Computer’s accounts, which are yet to be restated.
Disclosing Nasscom’s projections at the body’s annual meet here, the Chairman, Mr Pramod Bhasin, stressed that even a 4-7 per cent growth is good, given the economic environment.
He noted that core markets such as North America and verticals such as the banking and financial services industry “have started to stabilise”.
The domestic IT-BPO market is projected to grow at a higher rate — between 15 and 18 per cent — to reach around Rs 67,000 crore, compared with Rs 57,000 crore last year.
In dollar terms, domestic revenues were $12.5 billion in FY-09, Nasscom said.
Fiscal 2009 figures grew 21 per cent over Rs 47,000 crore in fiscal 2008.
The domestic market witnessed enhanced focus in the year ended March 2009 with “large transformational deals in telecom and e-governance, with contract value of outsourcing deals growing by 32 per cent, Mr Bhasin told newspersons after releasing the Nasscom outlook for the industry in 2009-10.
Growth break-up
Within the export segment, IT services have grown in FY-09 by 14.7 per cent to $26.5 billion; BPO exports are up by 16.5 per cent to $12.7 billion; engineering services and product exports up 11 per cent to $7.1 billion.
The industry employed nearly 2.2 million in 2009 fiscal, adding about 200,000 jobs in the fiscal year ended March 2009 (FY09).
In the previous year, the industry added between 250,000 and 300,000, according to Mr Som Mittal, President, Nasscom. In February 2009, Nasscom had said that the industry might add, aided by job offers at campuses, a net of one lakh jobs in FY10. TCS, for instance, has made 24,500 campus offers for this year.
Mr Pramod Bhasin, Chairman of Nasscom and CEO, Genpact said, “The demand will be there for people, but the focus would be on quality. The industry has spent a lot over the years in training, and this trend may not continue over time."
"It is time that the government and educational institutions spend more time on training and education,” he said.
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