IT-BPM industry maintains 12.3% exports growth in FY2016

The Indian IT-BPM industry is expected to sustain growth projection of 10-12% in the financial year 2017 The Dollar Business Bureau

The growth prospects are in line with the industry’s earlier projection to reach $350 billion by 2025, led by the surge in digital revenues

India’s IT-BPM industry is expected to cloak a double-digit growth of 12.3% in exports and 10% in domestic revenue during the financial year 2016-17, the National Association of Software and Services Companies (NASSCOM) said in its report, citing various industry trends including the country’s growing digital technology and consumer economy that would enable this growth. Keeping in mind the global spending on technology, the industry body has projected the double-digit growth to continue during the financial year 2017. The IT-BPM industry export revenue is expected to increase by 10-12% to $119-121 billion during the financial year 2017. “Industry meets export revenue target –growing by 12.3% in constant currency to reach $108 billion, while domestic revenue by 10% to reach ₹1,410 billion in the financial year 2016. Industry expects to sustain growth projection of 10-12% in the financial year 2017,” NASSCOM said in its report. Earlier, NASSCOM Chairman BVR Mohan Reddy, along with Vice-Chairman C P Gurnani and President R Chandrashekhar addressed a meeting in which they pointed out some of the current global trends, including confluence of digital technologies (cloud, mobility, IOT, social, big data), changing business models, rapidly growing innovative start-up ecosystem, government’s vision of driving digitisation, India’s consumer economy, that will be spearheading this growth. “Our industry is going bi-modal in today’s diverse landscape, gaining share in both traditional and digital markets and fuelling growth of the industry. Start-ups, ecommerce are the new champions of the industry and I expect these segments to increase their contribution to industry growth in the years to come,” Reddy said. The domestic revenue is expected to grow by 11-13% to Rs.1560-1590 billion in the financial year 2017. The growth prospects are in line with the industry’s earlier projection to reach $350 billion by 2025, led by the surge in digital revenues. Amid a growth of 0.4% in the global IT-BPM in 2015, the industry is expected to reach up to $143 billion in FY2016, doubling its revenue over the last six years and crossing the $100 billion milestone in export revenues. Meanwhile, e-commerce contributed $17 billion revenue boosting digital consumption. India continues to gain market share in the global sourcing sector and emerges as the largest, most diversified and scalable destination. Analysts also credited a sudden increase in start-ups and digitally-oriented companies for contributing about 13% growth for the leading technology companies. “Digital is reshaping the technology sector and the industry focus is to understand the full potential of digital technologies and help customers make the best of it. Rise of India’s digital quotient is our key priority for the next few years,” NASSCOM Vice-Chairman C P Gurnani said. Digital mergers and acquisitions deals also crossed $2 billion in the financial year 2016, multiplying 3 times over the previous fiscal. “India’s start-up landscape is now a global success story with young start-ups and unicorns making a difference in high impact areas. With over 4,200 start-ups, India is now the third largest start-up base with over 1,200 start-ups being created every year aided by 4.9 millon worth of funding,” the report said.

February 06, 2016 | 02:10pm IST

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The Dollar Business Bureau - Feb 06, 2016 08:33 IST

IT-BPM industry maintains 12.3% exports growth in FY2016

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