Upbeat Nasscom unveils IT-BPO revival this fiscal

However, software and services export revenues for 2010 have been pegged at $56-57 billion from the earlier projection of $60-62 billion at 13-15 per cent growth. The industry is set to add 1.5 lakh more jobs next fiscal.

Disclosing these figures, National Association of Software and Service Companies (Nasscom) said on Thursday the sector’s export growth slowed to 16 per cent in 2008-09 from more than 20  per cent in previous years.

Growth

As for the domestic market, Nasscom said revenues would grow by 15-17 per cent in the next fiscal to touch Rs 76,100-77,500 crore. For the current fiscal, the domestic market is expected to witness 12 per cent growth in fiscal year 2009-10 to reach Rs 66,200 crore.

Briefing reporters, Nasscom president Som Mittal said the growth was led by a domestic market buoyed by increased government spending. “It’s a historic moment for the Indian IT-BPO industry as it touches the $50-billion landmark.” Nasscom chairman Pramod Bhasin said the industry’s performance this year was stronger than what was reflected through growth numbers.

The industry has reinvented itself by increasing its cost efficiencies, utilisation rates, diversification into new verticals and markets and new business and pricing models.

Bhasin added: “With a renewed value proposition, we look forward to a terrific future with growth estimates of 13-15 per cent in fiscal year 2011 for the export sector and 15-17 per cent for the India market.“ On the recession, Bhasin said “the economic environment will take another two to three quarters to stabilise.”

On the recession, he said,  “We expect rebound in IT spending growth. The BPO spending continues to grow. He said US was recovering and Europe was catching up. “The IT industry is growing despite the crisis”.