The Information Technology (IT) business process management (BPM) sector has been fuelled by the customer’s priority to go digital, and IT exports are likely to end this fiscal with 12.3 per cent growth in reported currency terms to $98.5 billion.
This is against an earlier estimate of 13-15 per cent, according to the National Association of Software and Services Companies (Nasscom).
According to Nasscom’s Strategic Review 2015, total revenues for the industry, including domestic revenues and e-commerce, are expected to be $146 billion in 2014-15. IT services grew 12.6 per cent, BPM 11 per cent and engineering R&D as well as product development 13.2 per cent, the report said.
The domestic market grew 14 per cent, fuelled by e-commerce revenues of $14 billion to reach $48 billion. The industry now employs 35 lakh professionals and added 2.30 lakh employees in 2014-15.
“Overall, we have seen healthy growth considering currency fluctuation,” Nasscom Chairman R. Chandrasekaran told a media conference. “We are now at the half-way mark of our target of $300-billion industry revenue by 2020 (excluding e-commerce revenues, it would be $225 billion). E-commerce has emerged as the poster-boy of the domestic market success.”
This fiscal saw a huge jump in start-up landscape with India now the fourth largest start-up hub in the world with 3,100 start-ups.
Nasscom President R. Chandrashekhar said, “the domestic sector will benefit from the government’s digital push. It had invested around $25 billion in 2014-15 in digitization, infrastructural improvements and technology in healthcare as well as agriculture.”
In 2015-16, some headwinds like foreign exchange fluctuations and uncertainty over oil prices could emerge.
“It is important for India to re-designate itself as a solutions provider rather than a services provider. In the domestic market, there is huge head-room for growth in the Tier-II and Tier-III cities,” Nasscom Vice Chairman Mohan Reddy said. In 2015-16, Nasscom expects the industry to add revenues of $20 billion to the existing revenues of $146 billion with export revenues projected to grow 12-14 per cent and reach $110-112 billion. Over the same period, domestic revenues (including e-commerce) can grow 15-17 per cent and reach $55-57 billion.
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