Disruptive technologies, digitization, agile entrepreneurial ecosystem, recovering global markets, and many other such trends were revealed at the NASSCOM Strategic Review 2014 press conference today at Grand Hyatt, Mumbai. The press conference was addressed by Mr. Krishnakumar Natarajan, Chairman, NASSCOM, Mr. R Chandrasekaran, Vice Chairman, NASSCOM and Mr. R Chandrashekhar, President, NASSCOM, before the commencement of the annual India Leadership Forum.
Driven by an improvement in the global economic climate and rise in the technology spend, FY2014 brought optimism for the Indian IT-BPM industry. Rapid technology transformation is leading to altered and dynamic client engagement, which in turn is fueling business transfiguration, speeding up delivery services, and driving innovation capabilities across practices and operations. In FY2015, NASSCOM expects the industry to add overall revenues of USD 13-14 to existing industry revenues of USD 118 billion. Export revenues for FY2015 is projected to grow by 13-15% to reach USD 97-99 bn. Domestic revenues for the same period will grow at a rate of 9-12% percent and is expected to reach INR 1250 – 1280 billion during this year.
Mr. Krishnakumar Natarajan, Chairman, NASSCOM, said, “The world around us is rapidly changing, with socio economic, business and technological megatrends presenting an altered business landscape. Technology itself has journeyed from hardware, to enterprise software, to digital solutions becoming an integral part of every industry. This evolving landscape presents our industry with rapid growth prospects”. He further added that, “India is now becoming home to a new breed of startup companies focused on high growth areas such as mobility, e-commerce and other vertical specific solutions – creating new markets and driving innovation”.
“The need of the hour is to prioritize domains based on potential size, market readiness and the growing significance of policy evolution. Going forward the industry’s mantra will be to ‘Collaborate, Connect, Co-Create’ – offering specifically tailored model for each specialized domain in the IT-BPM sector. We are working towards enabling radical transformation of key sectors in India through use of ICT to reduce costs, increase access, enhance efficiency and enable innovation in the sector. Our industry has had a phenomenal journey in the past two decades growing from less than USD 100 million to a USD 100 billion plus sector and NASSCOM will look at garnering opportunities for the industry to further catalyze this phenomenal growth”, said Mr. R. Chandrashekhar, President, NASSCOM.
A gradual revival in consumer confidence leading to return of discretionary spending, and increased demand from US and Europe will help drive exports this year. While US continues to be the largest geographic market for India, accounting for 62%, the highlight for the year will be revival in demand from Europe, which is estimated to grow at 14% in FY14. Indian IT-BPM continues to remain the highest impact sector for India among all industries with the highest relative share in India’s GDP and exports among all services industries.
Mr. R. Chandrasekaran, Vice Chairman, NASSCOM said “The future looks exciting and positive as the IT-BPM industry is evolving dramatically in terms of scale and complexity. The sector will leverage collaboration, innovation, technology shifts and build a transformational agenda for India. It will create a market not only in India but globally that will serve as technology differentiator for customers shifting from cost to innovation. The sector will continue to impact India through job creation, foreign exchange, exports and position India as global IT-BPM partner.”
FY2014 – Review
Despite challenges in the global market, Indian IT-BPM industry sustained its growth trajectory and is expected to clock export revenues of USD 86 billion with a Y-o-Y growth rate of 13 per cent. Domestic market also witnessed YoY growth rate of 10% taking the domestic revenues to INR 1150 billion. The Indian IT-BPM sector continues to be one of the largest employers in the country directly employing nearly 3 million professionals, adding over 160,000 employees. FY2014 can be characterized by rapid evolution, expansion of verticals and geographic markets, attracting new customer segments, and offering a considerably wider spectrum of solutions.
The 2020 vision of USD 300 billion will be driven by new business models, service lines and talent structures. Business models have been shifting from traditional labour-based onsite-offshore model to cloud-based and off–premise solutions. These changing models will bring compelling business innovations with greater breadth and specialization across key verticals – BFSI, telecom, healthcare, social entrepreneurship etc. To sustain growth in the coming years, the industry is going to focus on verticalization, operational excellence and expanding global delivery model.