Indian IT-BPM industry to cross $50bn mark soon

NEW  DELHI, INDIA: The current fiscal year FY2015 brought in overall optimism for the Indian IT-BPM industry.  The domestic IT-BPM market is rapidly approaching the $50 billion mark. In FY2015, the market is expected to be a little over $48 billion, an annual growth of 14 per cent, reveals the NASSCOM Strategic Review 2015.

Aggregate industry revenues for FY2015 are estimated at $146 billion. This is faster than the average industry growth, and is largely being driven by the booming eCommerce segment. Stable government with a technology focused growth agenda is further boosting technology adoption in the domestic market.

The Indian IT-BPM industry is one of the largest employers in the country directly employing nearly 3.5 million professionals, adding over 2,30,000 employees.

ER&D and product development segment is the fastest growing at 13.2 per cent, driven by higher value-added solutions from existing players and expansion of the GIC landscape.

Digital solutions around SMAC – upgrading legacy systems to be SMAC enabled, greater demand for ERP, CRM, mobility and user experience technologies is driving growth in IT services. Infrastructure outsourcing and software testing segment also outpaced the industry growth rate.

The BPM sector is being driven by greater automation, expanding omni-channel presence, application of analytics across entire value chain, etc.

FY2015 is expected to see the export market at $100 billion, recording a 13.1 percent growth in constant currency over last year. Growth in reported currency is estimated at 12.3%.

Exports to USA, the largest market grew above industry average, aided by an economic revival and higher technology adoption.

Demand from Europe remained strong during the first half of the year, but softened during the second half due to currency movements and economic challenges.

Manufacturing, utilities and retail growth remained strong as clients increase discretionary spend on customer experience, digital, analytics, ERP updates and improving overall efficiency.

The year also witnessed hyper-growth in the technology start-up and product landscape and India is already ranked as the 4^th largest startup hub in the world with over 3,100 startups in the country.

“India is jumping the technology maturity curve and is emerging as a digital economy.The recent announcements by the Government on Digital India, Make in India, Skilling India are creating a renewed thrust on the domestic market,” said R. Chandrashekhar, President, NASSCOM.

In FY2016, NASSCOM expects the industry to add revenues of $20 billion to the existing industry revenues of $146 billion. Export revenues for FY2016 is projected to grow by 12 to 14% and reach $110-112 bn. Domestic revenues (including ecommerce) for the same period will grow at a rate of 15-17% percent and is expected to reach $55-57 billion during the year.