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Indian IT-BPO industry exports touches USD 50 billion landmark
Domestic market expected to witness 12 percent growth in the current fiscal year, with direct employment expected to grow by 4 percent and cross 2.3 million InformationWeek News Network, February 08, 2010
      
Nasscom recently released the Indian IT-BPO sector performance estimates for FY09-10. According to the findings, export revenues for the Indian IT-BPO industry are expected to record a growth of 5.5%, to reach USD 49.7 billion in FY 09-10. India continues to take centre stage and has over 50 percent of the total sourcing market. The industry today accounts for 25 percent of India’s exports and 10.5 percent of services revenues. There are over 900 captives in India accounting for USD 10.6 billion.  

The domestic Market is at an inflection point and is poised to grow at an impressive growth rate of 12 percent in FY10.  In this year, the domestic market saw over 60 large transformational deals in the telecom, retail, BFSI and e-governance sectors. The future looks bright as Nasscom estimates that there is a USD 9 billion business opportunity in e-Governance over the next three years.

Said Som Mittal, President, NASSCOM said, “It’s a historic moment for the Indian IT-BPO industry as it touches the USD 50 billion landmark. The growth was led by domestic market buoyed by increased Government spending in IT.  In addition, new areas such as Engineering Services and Product Development displayed phenomenal momentum clocking a combined revenue of over USD 10 billion.”

With 450 delivery centers in 60 countries across the world, the industry has an unparalleled global value chain. The industry has also enhanced its global workforce, hiring specialized talent in developed markets and building a truly global delivery model.

As per the findings, the coming years are going to represent a significant shift in terms of business models, service lines, customers and talent structure. There will be increased focus on higher end offerings such as system integration, consulting, business intelligence, knowledge services and vertical specific BPO services.

The industry is expected to generate an increasing share of revenues from the untapped SMB segment through improved pay per use business models and platform solutions. It is also expected to acquire domain expertise and near shoring capabilities to further advance India’s value proposition as a global outsourcing hub.


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