India's IT and business process outsourcing industry revenues are expected to grow by 19 percent in 2011, adding 240,000 employees to reach direct employment of 2.54 million, according to the National Association of Software & Services Companies (NASSCOM).
Looking ahead, software and services export revenues are expected to grow by 16-18 percent and domestic revenues by 15-17 percent.
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.
NASSCO President Som Mittal attributes the grow to “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."
NASSCOM estimates that India commands 55 percent of the IT-BPO market. In terms of international business, the IT Services segment was the fastest growing, with a 22.7 percent annual increase. Indian IT service offerings have evolved from application development and maintenance to providing testing and infrastructure services, consulting, and system integration.
Engineering design and products development segments generated revenues of USD 11.3 billion, a 13.4 percent increase, driven by increasing use of electronics, technology convergence, and the need for localized products. The engineering services landscape in India has evolved significantly reflecting maturity, diversification, and enhanced verticalisation to partner with global corporations, NASSCOM said.
Increased technology adoption across Government, Corporates and SMBs for providing citizen services, enhanced internal controls and customer service led to an increase in outsourcing within the domestic market.
NASSCOM is the premier trade body and the chamber of commerce of the IT-BPO industries in India. It is a global trade body with more than 1,200 members, which include both Indian and multinational companies that have a presence in India. NASSCOM's member and associate member companies are broadly in the business of software development, software services, software products, consulting services, BPO services, e-commerce and web services, engineering services offshoring and animation and gaming.