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India's
outsourcing industry expects to grow by 32.6% says
Nasscom NASSCOM, the
premier trade body and 'voice' of the IT software and service industry in
The Indian
IT-ITES sector (including the domestic and exports segments) is expected
to exceed US$47.8bn in annual revenue in FY07, an increase of nearly 28%
in the current fiscal >Contribution
to >Service
and software exports remain the mainstay of the sector contributing
US$31.3bn and beating forecast to register a 32.6%
growth. >Increasing
traction in offshore product development and engineering services is
supplementing > Service-line
expansion: Aiding service providers to take on larger and more complex
deals, and is driving up the average size of contracts awarded to Indian
firms. Indian Service
Providers have grown their share of contracts of values in excess of
US$50M from 1% in 2002 to 7% in 2006. * High
offshore component of delivery and superior execution in multi-location
delivery continue to be key differentiators * Broad-based
industry structure - IT led by large Indian firms, BPO by a mix of Indian
and * Even though
larger players continue to lead growth, gradually increasing their share
in the industry aggregate; several high-performing SMEs also stand
out Employment
Trends & NASSCOM Initiatives: Total IT Software and services
employment to reach 1.6 million in FY07. The industry in collaboration with
the government and other stakeholders has initiated several initiatives to
further enhance the availability and access to suitable talent for IT-ITES
in +The NAC
(NASSCOM Assessment of Competence has been nationally rolled our in
November 2006, after a successful pilot. This is being taken to a number of
states in 2007 + A
comprehensive skill assessment and certification programs for entry-level
talent and executives (low-middle level management) is
underway + An image
enhancement program to build greater awareness about the career
opportunities in this segment is underway + NASSCOM has
been working with the academia across the country under its IT Workforce
development initiative to encourage and facilitate greater industry
interaction; NASSCOM has signed MoUs with UGC and AICTE to take forward
these initiatives + NASSCOM has
suggested the concept of experimenting with adapting the Special Economic
Zone concept (deregulation and removal of restrictions) for education, and
creates Special Education Zones.
The long term steps that are needed include much higher government
investment in education, major education reform and better compensation
and research grants for teachers/researchers + NASSCOM has
proposed the setting up of a chain of finishing schools for IT
professionals to make them more employable with a simple 3-4 months of
honing of technical skills and imparting soft skill training, helping
bridge the manpower supply-demand gap by at least 30-40%. It has been proposed that such
finishing schools be set up by the IITs and National Institutes of
Technology Domestic
Market Matures: Complements the continued growth in IT-ITES exports and
for the first time ever in FY 2006 showed signs of breaking out of the
hardware led growth and the trend of software and services gaining share
is expected to continue. The total size of the domestic
market is expected to cross US$15.9bn in FY
2006-07, a growth of 21% over FY 2005-06. Traditionally, this segment has
been led by MNCs. However, Indian firms are
gradually gaining ground.
Overtime this segment could become a larger SME play, as the
mid-sized firms increase their levels of IT
adoption Global
Markets: While US (contributed 67.18% of the overall revenue in FY 06),
Growth
Verticals: BFSI (38%), Telecom and Hi-Tech (20%) continue to account for
approximately 60% of the pie.
Other verticals such manufacturing (13%), retail (8%),
transportation (2%), healthcare (3%) and Construction& utilities (4%)
are also growing rapidly Going forward:
For India to fully capitalize on the opportunity and sustain a
disproportionate lead in the global IT-ITES space, stakeholders need to
continue working towards timely and coherent execution of initiatives to
address supply-side concerns across the following
areas
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It`s
advantage India in IT application outsourcing:
Report IDC:
Offshoring, SOA, managed services to drive 2007
growth Pharmaceutical
firms at forefront of IT outsourcing-report Aon
to Offshore Back-office Operations to India Unilever to award
infrastructure management to HP. BAE Systems
Australia Appoints Xchanging for A$300 Million, Five-Year Outsourcing
Arrangement The
Hartford Financial Services Group outsources data
services. Yara
International awards 1.26bn nkr IT outsourcing deal to
IBM Euronet,
Raiffeisen Bank Sign 4-Yr Outsourcing Contract
Renewal HP
Expands in Russia |
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Unisys wins DIMIA and
defence contracts IBM
and Finnish Retailer Alko Announce Three-Year IT Services
... TSYS
Acquiring Solutions Signs Agreement with NPC L-1
gets Air Marshal Service R&D work Accenture
Head Count In India Will Surpass US Levels By
August Hinduja
TMT forms JV with UK based Centric and Fox Mandal Little for legal
outsourcing United
to announce sale of its business outsourcing
unit ACS
Renews HRO Contract With American Financial
Group |
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