On the back of a revival in consumer confidence and pick-up in discretionary spending
A gradual revival in consumer confidence, leading to a return of discretionary spending and increased demand from the U.S. and Europe, is expected to see Indian IT exports grow 13-15 per cent in 2014-15 to reach $97-99 billion.
Figures released by National Association of Software & Service companies (Nasscom) said the overall Indian software and BPO industry will add revenues of $13-14 billion to existing industry revenues of $118 billion.
Domestic revenues for the period will grow at 9-12 per cent and reach Rs. 1250-1280 billion during this year.
During FY’14, industry’s exports are estimated to grow 13 per cent at $86 billion, with domestic revenues up 9.7 per cent at Rs. 1,910 billion. Nasscom said the industry added 160,000 employees during the year, and provided direct employment to 3.1 million people and indirect employment to 10 million people.
“Technology itself has journeyed from hardware to enterprise software to digital solutions becoming an integral part of every industry,” K. Natarajan, Chairman, NASSCOM, said in a statement.
“This evolving landscape presents our industry with rapid growth prospects. India is now becoming home to a new breed of start-up companies focused on high growth areas such as mobility, e-commerce and other vertical specific solutions – creating new markets and driving innovation.”
The U.S. continues to be the largest geographic market for Indian IT exports, accounting for 62 per cent, but the highlight of the year will be revival in demand from Europe— which is estimated to grow at 14 per cent in FY’14. “The need of the hour is to prioritize domains based on potential size, market readiness and the growing significance of policy evolution,” R. Chandrashekhar, President of NASSCOM, said. “Going forward, the industry mantra will be to ‘collaborate, connect, co-create’—offering a specifically tailored model for each specialized domain in the IT-Business Process Management (BPM) sector.”
“The future looks exciting and positive as the IT-BPM industry is evolving dramatically in terms of scale and complexity,” R. Chandrasekaran, Vice-Chairman, NASSCOM, said in a statement. “The sector will leverage collaboration, innovation, technology shifts and build a transformational agenda for India. ”