The Indian IT-BPM industry revenue is expected to reach $166 billion in fiscal 2016 from $146 billion in fiscal 2015, said NASSCOM today.
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NASSCOM said the Indian IT-BPM industry – including e-commerce – has clocked revenues of $146 billion in fiscal 2015. The Indian domestic market grew 14 percent — fuelled by ecommerce to over $48 billion. Exports of the Indian IT-BPM industry rose 13.1 percent to $98.5 billion in fiscal 2015.
In addition to e-commerce, stable government with a technology focused growth agenda is further boosting technology adoption in the domestic market.
Growth predictions for fiscal 2016
In fiscal 2016, NASSCOM expects the IT-BPM industry to add revenues of $20 billion to the existing industry revenues of $146 billion. Export revenues for FY2016 is projected to grow 12 to 14 percent to $110-112 bn. Domestic revenues (including ecommerce) will grow at 15-17 percent to $55-57 billion during the year.
Growth drivers in fiscal 2015
The industry continued to evolve over the year and prioritized on enhancing efficiency, enabling transformation and agility and partnering for digital initiatives.
ER&D and product development segment is the fastest growing at 13.2 percent, driven by higher value-added solutions from existing players and expansion of the GIC landscape.
Digital solutions around SMAC – upgrading legacy systems to be SMAC enabled, greater demand for ERP, CRM, mobility and user experience technologies is driving growth in IT services.
Infrastructure outsourcing and software testing segment outpaced the industry growth rate. The BPM sector is being driven by automation, expanding omni-channel presence, application of analytics across entire value chain, etc.
Exports to USA, the largest market grew above industry average, aided by an economic revival and higher technology adoption.
Demand from Europe remained strong during the first half of the year, but softened during the second half due to currency movements and economic challenges.
Manufacturing, utilities and retail growth remained strong as clients increase discretionary spend on customer experience, digital, analytics, ERP updates and improving overall efficiency.
The Indian IT-BPM sector directly employs nearly 3.5 million professionals, adding over 2,30,000 employees.
“Digital also became main stream during the year, with industry increasingly investing in digitized solutions to drive future growth opportunities. Interestingly digital solutions in the year accounted for 12-14 percent of the industry revenues,” said R Chandrasekaran, chairman, NASSCOM.