IT exports seen growing at a measly 4-7 per cent

IT-BPO exports posted a growth of 16% to $46.3 billion in 2008-09


Nasscom Chairman Pramod Bhasin (left) with President Som Mittal.

Nasscom also announced the findings of its annual survey on the performance of the Indian IT-BPO services sector for FY 2008-09 and outlook for FY 2009-10. According to the findings, the IT sector reached US$58.8 billion in FY 2008-09 in revenue, up from US$52 billion in FY 2007-08.

Domestic growth

The revenue from export for the Indian IT-BPO industry recorded growth of 16.3 per cent and clocked revenues of US$46.3 billion in FY 2008-09 up from US$40.4 billion in FY 2007-08. The domestic segment grew by 21 per cent to register revenues of Rs 57,000 crore in FY 2008-09 from Rs 47,000 crore in FY 2007-08.

Within the export segment, IT services have grown by 14.7 per cent to clock revenues of US$26.5 billion; BPO exports are up by 16.5 per cent registering revenues of US$12.7 billion. Engineering services and product exports clocked revenues of US$7.1 billion, growing at 11 per cent in FY 2008 -09.     
                     
Value chain

Nasscom Chairman Pramod Bhasin said: “While growth was synonymous with industry performance in the past decade, resilience and efficiency was the thrust in the year 2008-09. In the face of a severe economic downturn in key markets, the industry was able to deliver a high growth of over 16 per cent and retain its position as a strategic global sourcing destination.

The industry also enhanced its thrust on building a globalised value chain, with a 35 percent increase in global delivery centers since 2007”.

The domestic market witnessed enhanced focus in FY 2008-09, with large transformational deals in telecom and e-governance and contract value of outsourcing deals growing by 32 per cent. Domestic BPO got a special boost with over 40 per cent growth in this period.

The year ahead

Nasscom President Som Mittal said, “In a difficult year the industry has re-engineered itself to partner with its clients. Increase in fixed price contract, shift from onsite to offshore and end-to-end transformational deals helped the industry to get over 90 percent repeat business from its clients.”   Nasscom expectes that in 2009-10 export revenue will grow between 4 to 7 per cent to reach US$48-50 billion. It said that in the last few weeks the industry has witnessed some stabilisation in the demand environment with improvements in GDP growth rates, stock indices upswing that could indicate early signs of recovery.

However, worldwide IT spending growth is expected to decline in 2009 and 2010. The environment continues to be challenging with global demand ecosystem being weak; absence of large deals; vendor consolidation and pricing pressures.

“The industry in its first quarter results has demonstrated sustained focus with increased operating margins and enhanced utilization. The Nasscom survey estimates that the IT-BPO export revenues will grow by 4-7 per cent,” said Bhasin.


Top 20 IT Services Exporters 08-09

1   Tata Consultancy Services

2   Infosys Technologies Ltd.

3   Wipro Ltd

4   HCL Technologies Ltd.

5   Tech Mahindra Ltd

6   Patni Computer Systems Ltd.

7   MphasiS Ltd

8   Oracle Financial Services Software Ltd

9   Aricent Technologies (Holdings) Ltd

10   CSC India Pvt Ltd

11   Larsen & Toubro Infotech Limited

12   Prithvi Information Solutions Ltd

13   Polaris Software Lab Limited

14   MindTree Ltd

15   Mascon Global Ltd

16   3i Infotech Ltd

17   HSBC Software Development (India) Pvt. Ltd.

18   Hexaware Technologies Limited

19   Mastek Ltd.

20   Sonata Software Ltd

Note:  Includes IT Services, Engg Services, Software Products and Offshore Product Development revenues. Ranking is based on revenue data submitted by companies. List does not include some companies whose corporate headquarters are
located outside India, but have significant India-centric delivery capabilities.

Top 15  BPO Exporters: 08-09

1   Genpact India Pvt Ltd

2   WNS Global Services (P) Ltd

3   IBM-Daksh Business Process Services Pvt. Ltd.

4   Wipro BPO

5   Tata Consultancy Services BPO

6   Firstsource Solutions Ltd

7   Aditya Birla Minacs Worldwide Ltd

8   Aegis Ltd

9   Infosys BPO

10   HCL BPO

11   EXL Service.com (India) Pvt Ltd

12   Intelenet Global Services Ltd

13   Hinduja Global Solutions Pvt Ltd

14   24/7 Customer Pvt Ltd

15   MphasiS BPO

Note: This list does not include some companies whose corporate headquarters are located outside India.


Industry in a nut shell

* Industry revenues gross US$58.8 b in FY 2008-09

* Export revenues – US$46.3 billion; Domestic: US$12.5 billion

* Export revenues in FY 2009-10 estimated at US$48-50 billion

* Domestic revenues to grow by 15-18%

* Genpact, WNS & IBM Daksh lead BPO rankings

* TCS, Infosys & Wipro are top 3 in IT services exports

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