[kictanet] India's Outsourcing Exports at US$50 Billion

[Edwin Onchari]

Hi All,

I find this article an incentive in refocusing our energy on the sector
(both local and international). All is not lost, and against all critics.we
can still get a share of the pie
(http://www.pcworld.com/article/188514/indias_outsourcing_exports_at_us50_bi
llion.html) 

 

India's revenue from exports of IT and BPO (business process outsourcing)
services is likely to grow 5.5 percent to US$49.7 billion in the Indian
fiscal year to March 31, 2010, according to estimates released Thursday by
the country's National Association of Software and Service Companies
(Nasscom).

The revenue figure includes exports by Indian outsourcers as well as by
Indian services and software development subsidiaries of multinational
companies including Microsoft, Dell, and Oracle.

Nasscom has forecast higher revenue growth in the range of 13 to 15 percent
from IT and BPO exports in the next fiscal year to March 31, 2011. 

India has emerged as a key supplier of IT and BPO services to customers in
the U.S., U.K., and other markets. Its business was however hit in the
fiscal year to March 31, 2010 by the recession in some of these economies. 

The growth rate of 5.5 percent estimated by Nasscom for the year ending
March 31, 2010 is far lower than the 16 percent estimated by Nasscom for the
previous year. The 2009 figure is still an estimate as the results of Satyam
Computer Services, a large Indian outsourcer, are still being re-stated,
after a financial scandal at the company.

Top Indian outsourcing companies like Tata Consultancy Services (TCS),
Infosys Technologies, and Wipro said in January that they were seeing an
improvement in demand for their services from customers in key markets,
including the U.S. 

Indian outsourcing companies have also started hiring in large numbers
again. Wipro's IT services business added 4,855 staff in the quarter ended
Dec. 31. The company had cut staff by 630 in its IT services business in the
previous quarter. TCS said in January that it is adding about 11,000 staff
in the current quarter, including 8,000 trainees. The company added 7,692
staff in the quarter to Dec. 31. 

Direct employment by the country's IT industry is expected to be 2.3 million
by March 31, 2010, with over 90,000 jobs added during the current fiscal
year, Nasscom said.

A number of new large IT services deals are expected to be signed by the
second quarter of this year, Sudin Apte, principal analyst at Forrester
Research, said in January. Indian companies are however not likely to
achieve soon the revenue growth levels they had before the recession, he
added. 

A lot of the expenditure by customers still falls under the category of
necessary expenditure, with discretionary expenditure on IT services likely
to start by the middle of this year, according to Diptarup Chakraborti,
principal research analyst at Gartner. 

Besides a pick up in exports revenue for the year ended March 31, 2010,
Nasscom is also expecting a growth in the domestic services business.
Domestic revenue is expected to grow by 12 percent to Indian rupees 662
billion ($14 billion). In the next fiscal year, revenue growth from the
Indian market is expected to pick up by 15 to 17 percent.

 

 

Kind regards,

 

Edwin M Onchari

CEO- Kenya BPO Society

+254-(0)720 755 951

eonchari at kenyabposociety.or.ke

www.kenyabposociety.or.ke

Blogs:

 
<http://kenyabposociety.blogspot.com/2010/01/key-to-unlocking-kenyas-outsour
cing.html>
http://kenyabposociety.blogspot.com/2010/01/key-to-unlocking-kenyas-outsourc
ing.html

 

 
<http://kenyabposociety.blogspot.com/2010/01/discounted-medical-cover-for-in
dustry.html>
http://kenyabposociety.blogspot.com/2010/01/discounted-medical-cover-for-ind
ustry.html 

 

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