Nasscom defers its IT-BPM forecast for 2017-18 to next quarter

The industry is projected to grow at a rate of 8.6% (in constant currency) to reach over US $155 billion in FY 2016-2017

GN Bureau | February 16, 2017


#industry revenue   #digital   #IT. Nasscom  
Nasscom event in Mumbai
Nasscom event in Mumbai

NASSCOM has deferred its growth forecast for the FY 2017-18 for the IT-BPM industry to the next quarter. 
 
“We had shared with you our revised guidance in November and have nothing new to add to that due to uncertainty in the short term outlook in terms of macroeconomic outlook, currency fluctuations, headwinds in healthcare (repeal of Obama care) and political uncertainty - with the new government in US settling in. There is an expectancy of an upturn in the US and consequent traction on IT spends. Projections of IT spends by major analyst like Gartner do indicate that a growth from 2.8% in 2016 to 5% and 5.3% in 2017 and 2018. Discretionary spending on digital will rebound as the overall economic scenario improves” said R Chandrashekhar, president, NASSCOM.
 
According to the IT industry body, the industry is projected to grow at a rate of 8.6% (in constant currency) to reach over US $155bn in FY 2016-2017. In November Nasscom had given a downward guidance from 10-12 percent due to Brexit, the US elections and weakened financial services spending.
 
India’s domestic IT-BPM market is expected to grow by 12% year-on-year (YoY) to reach Rs 2,545 billion. Industry revenues (excluding e-commerce) stand at USD 155.5 billion (in constant currency). Including e-commerce, the YoY growth has been 17% generating a revenue of Rs 4,766 billion.
 
IT-BPM exports from India are growing at 8.7% with IT services of US $18 billion. The revenues Engineering and R&D sector (ER&D) and products is US $29 billion. India is the world’s biggest BPM destination with revenues of US $30 billion.
 
The US and Asia-Pacific are fastest growing markets at 7.8% with gradual stabilisation in the growth of the European market. Globally, IT Services and BPM spending grew at 2.8% in 2016. Retail, healthcare, travel and transportation have been the key verticals for the Indian IT-BPM industry growing at the rate of 8%.
 
Digital accounts for 14% of industry revenues and there was a four-time growth in digital spending between 2014 and 2016. About 12-15% of the total revenue came from digital, 32% M&A took in digital space with more than 100 CoE’s in technology areas. The industry with 3-3.5 lakh digitally skilled employees, 20% Indian firms reported opting CDO (chief digital officer) roles and 30% BFSI (banking, financial services, and insurance) deals have digital components.
 
Globally digital deal volume grew 1.5 times of traditional deals and 75% acquisitions were digital focused. With increased spending on R&D on software, services moved up from 54% to 59% in 2010-2015.
 
The industry currently employs over 3.86 million people with growth of 5% and addition of 1.7 lakh people over FY 2016.With new areas of work opening up due to technology, 50-60% jobs will require new skills. The future skills work group at NASSCOM in partnership with BCG will now work to enhance the skill ecosystem. The taskforce has identified 55 new job roles and 155 distinct skills along with its member firms in a skilling-reskilling initiative to train 1.5-2 million people working on next generation technologies in India within the next 4-5 years.
 
“The digital tsunami is reshaping our industry. The priority is to reimagine businesses and unlock new opportunities. The Indian IT-BPM sector is emerging as a digital solutions partner for global corporations and we are excited to work across stakeholders – customers, start-ups, academia and others, to build this exciting future” said CP Gurnani, chairman, NASSCOM and MD, CEO, Tech Mahindra.
 

Comments

 

Other News

Spotting and nurturing young talent, helping them bloom

Things don’t turn up in this world, as former US president James A. Garfield once said, until someone turns them up. This is all the more so, when one considers the hidden gems that are waiting to be discovered. The world is full of talented young people who need just a nudge to provide that spark th

Khadi sets new record for single-day sale at Delhi shop

On Gandhi Jayanti this year, the Khadi India outlet in Connaught Place in the capital once again set a new record of khadi sales in a single day. In a single day, the Khadi India showroom at Connaught Place marked sale of Rs. 1.34 crore and broke its own previous record of Rs. 1.01 crore se

Mumbai Metro: Delay on Tracks

In Mumbai, the ninth most populous and congested city on the planet, high rentals compel citizens to spend five hours on an average travelling to work every day. Mumbai’s Metro Rail System extending towards Mumbai Metropolitan Region (MMR) will not only provide East-West connectivity

Sustainable tourism is responsible tourism

Tourism is a huge part of global culture nowadays and is also one of the biggest sources of revenue across the world. According to the World Travel and Tourism Council (WTTC), in 2019, the tourism industry contributed $8.9 trillion or 10.3% to the global GDP. The industry witnessed a massive lull in 2020 d

Fernandes: A Life as Legacy

The Life and Times of George Fernandes By Rahul Ramagundam Penguin/New India Foundation, 624 pages, Rs 799 Amer

India set to enter 5G era

After years of intense preparation, India is about to take the next step in information and communication technology. Prime Minister Narendra Modi will launch 5G services in India on October 1 and also inaugurate the 6th Edition of India Mobile Congress 2022 to be held till October 4, at Pragati Maidan, Ne

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter