February 27, 2012: As it is difficult to predict the global economy at this point of time, most of the IT service providers have cut their forecast for the fiscal year. But still the industry players are optimistic that the industry can maintain its rapid growth. The revenue of the industry has doubled in a period of five years and reached USD 88 billion in 2011. It is predicted that the revenue will hit the mark of USD 100 billion in 2012, even during uncertain economy and stiff competition from other emerging markets.
India is facing competition from destinations like Philippines and China and because of this the Information Technology industry in India is on its path to reinvent itself. India which was the global leader in call center operations lost its position to Philippines last year. The IT industry is preparing itself to provide high-end solutions to clients and thus move up the value chain. The National Association of Software and Service Companies will be leading the transformation process. The process will include retaining the employees to maximize the output, with emphasis on value added products and services.
It is said by the industry experts that the future of the Indian IT industry lies in attracting advanced business processes from the west. In order to offer high value services, the industry requires highly skilled and talented workforce. Finding skilled employees is a problem with many of the companies and the recent report by NASSCOM that only 25% of the engineering graduates in India are employable add to the woes of these companies. This is a common issue faced by all the IT service providers operating in the country. In order to overcome the problem of lack of skills, most of the IT companies are now providing training to fresh recruits and trying to tie up with institutions for job based training.
The problem of lack of skilled employees is felt across the world. In the case of India, it becomes more evident as the industry is growing fast and needs more employees every year. There are institutions that provide training to graduates and such training is based on the industry requirement.
The industry is set to achieve a revenue target of USD 220 billion by 2020. The industry experts say that it is achievable as the companies in the Europe and United States will require the Indian talents and the IT sector to cut cost and deliver their goods and services to their customers. All we need is to be innovative to provide high value services.