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

On a personal note: DIVINE

An underground rapper who grew up on Mumbai streets, Divine spins his music around his environment and poverty. His breakout single, ‘Meri Gully Mein’, along with fellow rapper Naezy caught Bollywood’s attention. The Hindi film ‘Gully Boy’ is inspired by their lives and gr

The role model for an IAS officer

Anil Swarup, an IAS officer of Uttar Pradesh cadre who retired in 2018, is a model bureaucrat who retained his optimism right till the end of service and exemplified dedication and commitment. His excitement at the opportunities that a job in the IAS provided is evident on every page of his new book publis

Reform of the civil services: At home and away

The question of reform of the civil services has been debated extensively at all levels at least over the last five to six decades after independence. Indeed, it was soon perceived that the Indian Administrative Service (IAS) may not be well equipped to deal with the problems of an emerging developing coun

The greatest challenge for any government

Shouting vengeance at all and sundry while wriggling out of holes of our own making seems to be our very special national characteristic. Some recent instances are illustrative of this attribute. A number of business tycoons with thousands of crores of unresolved debts have fled abroad with the government

The mysterious case of CBI’s legality

The Central Bureau of Investigation (CBI) came into existence, based on a Resolution of the home ministry, dated April 1, 1963 – a sheer coincidence that it also happens to be April Fool’s day. Over the past few months, we have seen the CBI live up to its founding day with great zeal, being i

The Evolution of Modi

Gujarat was passing through a turbulent phase in the 1980s. The decade began middle class agitations against new reservation policies, and the caste friction turned communal under the watch of chief minister Madhavsinh Solanki, alienating majority of urban population on both counts. The ground was ripe for

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter