Broad-based growth across verticals

National Association of Software & Services Companies (NASSCOM) recently released the key findings of the Indian IT-BPO sector performance for FY 2010-11.

Amidst speculation and an uncertain global economic environment, the Indian IT-BPO industry once again exhibited buoyancy and maturity, reflected through a strong customer demand in FY 2010-11.

The IT-BPO industry (excluding hardware) witnessed a quick rebound in growth and is estimated to grow by 19 percent, aggregating revenues of USD 76 billion this fiscal year. While exports continued to be the mainstay of the industry with revenue of USD 59 billion, the domestic market demonstrated steady growth of 16 percent to aggregate INR 787 billion. Direct employment is expected to reach nearly 2.54 million, an addition of 240,000 employees. As a proportion of national GDP, the sector revenues are estimated 6.4 per cent in FY2011.

Som Mittal, President, NASSCOM said, "Pent-up demand for IT-BPO services, return of discretionary spending, new business models that encouraged first time buyers, and re-invented value proposition for existing ones, were the key drivers for the industry performance. Industry in FY 2011 demonstrated a broad based growth across mature and emerging verticals, core markets and new opportunities. While BFSI as a vertical and US as a geography accounted for the largest revenue growth, emerging verticals and new geographies growth rate was 1.3-1.5 times of core markets reiterating our focus on diversification in the coming decade."

Within exports, IT Services grew by 22.7 per cent over FY2010, and aggregating export revenues of USD 33.5 billion, accounting for 57 percent of total exports. Indian IT service offerings have evolved from application development and maintenance, to emerge as full service players.