Mumbai: India's information technology and business process outsourcing sector will expand 12-14% in fiscal 2014 to touch $84 billion-$87 billion (Rs 4.5 lakh crore-4.7 lakh crore) in exports, according to industry grouping National Association of Software and Services Companies (Nasscom).
The sector is expected to end the year to March 31 with a growth of 10.2% to touch $75.8 billion, against an original forecast of 11-14%, which Nasscom had later revised to "at least 11%." Analysts, who are expecting slightly better growth in the next financial year, said the latest Nasscom forecast is along expected lines.
"Technology has today become an integral enabler for growth across all sectors and the industry is continuously evolving and innovating to emerge as a strategic partner to its customers," said N Chandrasekaran, chairman of Nasscom.
The India's IT/BPO sector contributes 8% to India's gross domestic product. At about three million professionals being directly employed, this industry is the largest organised private sector employer in the country.
"We should not look it at only in terms of percentage growth but incremental growth because now the base is huge," said Chandrasekaran.
As large corporations grapple with newer technologies such as data analytics, mobility, and cloud, the nature of demand in global technology outsourcing market is changing, forcing Indian information technology services companies to a difficult situation where they need to solve clients' business challenges rather than merely sell technology solutions to them.
Also, India's top software services firms reported wide deviations in growth during the current financial year. While Mumbai-based Tata Consultancy Services, where Chandrasekaran is the chief executive officer, is expected to close the financial year with about 14% growth, others such as Bangalore-based Infosys and Wipro are estimated to grow at about 5% during the same period.
New-Jersey based Cognizant, one of the fastest growing outsourcers, have said it expects to grow by at least 17% in 2013, compared with the 20% it clocked in the just completed year.
Market demand slowed down perceptibly for the sector in fiscal 2013, when growth expectations came down from around 17% growth that the industry clocked in 2012 fiscal.
Analysts were predicting a revival for the sector after the better-than-expected growth reported by top software service firms for the three months to December, which is a traditionally slow quarter for the sector on account of holiday season in their largest markets US and Europe.
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