The revenues for Indian information technology (IT) and business process outsourcing (BPO) services companies will cross $100 billion mark this financial year 2011-2012
NASSCOM (National Association of Software and Services Companies) has forecast a slowdown in software exports in 2012-13 compared to 2011-2012. In FY13, the IT and BPO export revenues is expected to grow at 11-14 per cent, while the domestic revenues are estimated to grow by 13-16 per cent.
The growth was driven by a number of factors such as new business models, services around new technologies such as cloud, mobility, analytics, social media. .
The challenges for the industry in FY13 are several : the elections in the US, leadership changes in euro zone, euro debt crisis and India's own policy paralysis are definitely dampeners. There is policy paralysis in India with government in crisis mode over corruption scams. There is no road map on direct taxes code, goods and services tax and SEZ issues
Elections in key markets such as the US, France, Russia, and protectionist sentiments and election rhetoric are will negatively impact business sentiment.
Gartner research says that the growth of IT in India is expected to continue, with an annual increase to exceed 10.3% up until 2015. Cloud computing in insurance sector growing according to Gartner. Major Indian IT service companies have improved their cloud services and are providing cloud computing services to clients.
The Euro crisis and visa restrictions in USA and tightening of UK work permit rules in UK will restrict growth in these markets. US H-1B/L-1 visa rejection rates have doubled from 4% to 8% for larger companies. US has doubled H-1B visa fee to over $4,000 per visa. This would Impact on margins of IT companies by 20-30 per cent.
To counter the slowdown in US and UK, Indian IT industry plans to penetrate more in Latin America, Africa and Middle East. The Indian government will lead IT spending in India through its e-governance projects.