The National Association of Software and Services Companies (Nasscom), the apex body of the Indian business process outsourcing and software services industry, announced on Monday that it is targeting revenues of $300 billion by 2020, 177 per cent more than that earned in 2012.
N. R. Narayana Murthy, Infosys Chairman Emeritus, who headed an expert committee that deliberated on the ways and means of achieving the target, said revenues had traditionally come from four “focus areas” — IT services, Indian operatives of MNCs, Business Process Management (BPM) and Engineering and R&D services. However, the industry needed to focus on areas such as mobile and Internet and the domestic market if it was to grow at a compounded annual growth rate of 15 per cent, which is the asking rate if the industry plans to reach its target by 2020.
Revenues from the domestic market, a new focus area, are projected to increase from $23 billion to $75 billion. The biggest chunk of revenues is projected to come from the Internet and mobile space, one of the seven “focus verticals” identified by the committee. This segment is likely to account for one-third of all revenues earned by 2020.
The Chairman of Nasscom, N. Chandrasekaran, said the focus on the domestic market reflected its large and growing size as well as the talent that was available to tap the potential.
To expand Nasscom’s footprint in the industry, Mr. Murthy said it had to recruit 3,000 members over a period. The body at present has 1,303 members in the 5,000-company industry.