The IT industry, led by the BPO industry, is expected to grow by 13 to 15 per cent in 2010-11 fiscal, industry body Nasscom said today.
The Indian IT industry is expected to grow by 13 to 15 per cent, led by the BPO industry growing by 15 to 16 per cent in financial year 2011, National Association of Software and Service Companies (Nasscom) President Som Mittal told reporters here.
In 2009-10, the IT industry grew around 4-7 per cent due to the impact of global financial crisis.
Growth in domestic BPO revenues by 2020 is expected to expand seven-folds to reach $15-17 billion by 2020. The export revenues are expected to expand more than fourfold and reach $50 billion in revenues by 2020, he said while giving the industry outlook for the BPO sector.
This domestic growth will spell out opportunities for the youth and more employment opportunities especially in tier two and three cities with setting up of centres in smaller cities and towns, Mittal said.
He said that the BPO sector, which was built upon cost efficiencies during its initial phase and went on to focus on greater breadth and depth while embracing globalisation of delivery in the second phase, is now eyeing the next phase of growth by moving up the value chain.
"The move to BPO 3.0 would involve value enhanced end-to-end solutions, shared vision with customer on driving transformation and enterprise-wide cost efficiencies."
The drivers of the growth would include new sectors like healthcare, and new markets BRIC (Brazil, Russia, India, China), Japan, Germany.
It would also include new service lines (process transformation for productivity improvement) and new social, environmental and technology trends, he said during the Nasscom's BPO strategy summit 2010 here.
The BPO growth will see challenges in the form of new countries emerging with strong government incentives thereby offering tough competition, wages increasing 10-20 per cent in fiscal year 2011 and attrition rates going up. Attrition level in March 2010 were up by 8-10 per cent over March 2009, Mittal said.
Cross currency fluctuations were also impacting revenues offering new challenges, he said.
The challenge of this growth, he said, would lie in mitigating supply side issues by increasing supply pool through talent development initiatives changing mix of delivery pyramid, leveraging competitive locations, setting up delivery centres in tier two-three towns and building robust infrastructure.
