Mumbai: Despite uncertainty in the US and UK, the main markets for Indian software exporters, the Indian information technology (IT) industry will meet the lower end of its 11-14% growth guidance and at least achieve a double-digit growth in fiscal 2013, industry lobby body Nasscom said in its mid-year review on Monday.
The Indian IT industry’s export revenues, Nasscom estimated in a release on Monday, could be $75-77 billion in fiscal 2013 with the main growth drivers being remote infrastructure management (RIM), business process outsourcing (BPO) and testing. Emerging business segments such as retail, healthcare and utilities are expected to grow twice as fast compared with mature ones such as finance, according to the release.
Som Mittal, president, Nasscom, said the Indian industry continues to reinvent itself, “expanding the market, building new capabilities and a globalized model”. “Competitiveness, efficiency, service excellence and innovation are the key building blocks for the industry,” he added.
“The industry’s performance for the past half-year has demonstrated the sector’s ability to innovate and deliver in enabling growth of customer businesses in challenging times. Changing business models, solutions around disruptive technologies and verticalized structures are enabling the industry to emerge as a strategic partner for their customers,” said N. Chandrasekaran, Nassom chairman and also chief executive officer and managing director of India’s largest IT services provider, Tata Consultancy Services Ltd (TCS).
IT companies posted mixed results for the September quarter with TCS leading the pack with a 5% volume growth, followed by HCL Technologies Ltd’s 4.5% and Infosys Ltd’s 3.8% volume growth. Wipro Ltd said it hoped to catch up with rivals after several quarters of underperformance. “It’s been a decent, not a great quarter,” Azim Premji, Wipro’s billionaire chairman acknowledged after the company’s earnings announcement on 2 November.
On the other hand, Cognizant Technology Solutions Corp., the US-headquartered outsourcing firm, reported a 21.9% rise in net profit year-on-year and said its revenue for the year ending 2012 would grow at least 20% to $7.34 billion.