New Delhi: The country’s software and business process outsourcing exports are expected to rise 5.5% to touch $50 billion in the current fiscal (2009- 10), industry body Nasscom said on Thursday.
wThe estimation is in line with an earlier forecast of 4-7% given by Nasscom. The industry was optimistic to reach the $50 billion milestone export target in the current fiscal.
For 2010-11, it hopes that IT and BPO exports should grow at an annual 13-15% to touch $56-57 billion as the slowdown peters out and the world economy recovers boosting demand for outsourcing. The sector’s export growth had been slowing down from 32% five years ago to single digits of late.
Releasing the Indian IT-BPO sector performance estimates for FY09-10, Nasscom said “export revenues for the Indian IT- BPO industry are expected to record a growth of 5.5%, to reach $49.7 billion in FY 09-10.”
It said as industry emerges stronger from the global economic meltdown to post encouraging results, domestic revenues may also grow by 15-17% in the next fiscal to touch Rs76,100-77,500 crore. For the current fiscal the domestic market is expected to witness 12% growth in FY09-10 to reach Rs66,200 crore.
Industry will continue to be a net hirer with direct employment expected to grow by 4% and cross 2.3 million with over 90,000 jobs added in FY09-10, Nasscom President Som Mittal said.
Pramod Bhasin, chairman Nasscom and president & CEO, Genpact said “The performance of the industry this year is far stronger than what is reflected through the growth numbers.”
He further said the industry has reinvented itself by increasing its cost efficiencies, utilization rates, diversification into new verticals and markets and new business and pricing models. With a renewed value proposition, we look forward to a terrific future with growth estimates of 13-15% in FY11 for the export sector and 15-17% for the India market.“
“It’s a historic moment for the Indian IT-BPO industry as it touches the $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 $ 10 billion,” Mittal said.