The $100 billion Indian IT services industry is expected to meet the lower end of growth guidance of 11% for the fiscal year 2013.
National Association of Software and Services companies (Nasscom) that had provided a growth guidance of 11-14% at the beginning of this year, said that the industry will see double digit growth in FY13.
This estimate is based on Nasscom’s analysis of Indian listed companies, multinationals and GICs; and industry sectors – IT services, BPO, ER&D and Products.
“The industry has been able to grow despite a challenging environment. A few reasons that we could not meet the upper end of the guidance was the currency movement, and also because several of the global in-house captives (GIC) have been going through an internal efficiency measure several have also put a freeze their hiring targets,” said Som Mittal, President, Nasscom.
The 11% growth target also reflects the problem some of the top IT services firm have been going through. The top four-five IT services provider constitute about 40-45% of the overall exports revenue, of this Infosys has provided for a revenue guidance of just 5% of the fiscal and Wipro has continued to grow at 1-2% on a quarter-on-quarter basis.
Despite these the industry is confident that the Indian outsourcing model is an acceptable model. Since 2008 to 2012, the Indian IT players have increased their presence from 60 countries to 70 and increased their operating centres from 460 to 560.
“The industry performance for the past half-year has demonstrated the sector’s ability to innovate and deliver in enabling growth of customer businesses in challenging times. Changing business models, solutions around disruptive technologies and verticalized structures are enabling the industry to emerge as a strategic partner for their customers,” said N Chandrasekaran, Chairman, NASSCOM and CEO& MD, TCS.
Chandrasekarana also added that technology is increasingly becoming an integral part of every industry and in a multi-device connected world, new opportunities are being created for solutions on mobility, analytics, cloud and collaboration. These opportunities are also enabling growth of new companies from India that are serving both global and local markets. “This will drive future opportunity for the industry,” said he.