This world economy was riddled with moderation and uncertainty this year, and this was reflected significantly in the IT/BPM sector as well. The BPM industry has evolved to a great extent, with its reach expanding to different geographies and verticals with new customers being garnered and new technology and strategies being implemented.
In spite of the economy being very volatile, the tech spending in the global tech scenario saw a growth of 4.8%, and it has reached a whopping USD 1.9 trillion in the previous year. The spending on hardware grew by 7%, and a growth of 3% was achieved in both package software and IT services. BPM witnessed a growth of 9%, and ER and D grew by 4%.
The global sourcing market revenue reached around 130 billion US dollars. However, the concerns about economic volatility have reduced the volume of contracts by 13%. However, ACV (average contract value) remained constant at 21 billion US dollars. This was primarily because of a huge number of deals taking place in the BPM industry.
Shift of focus to enterprising solutions from enterprise services
A rapid evolution took place in the IT/BPM industry in India, with both organic and inorganic growth being witnessed rampantly. This was marked by the emergence of Indian MNCs having around 580 centers across the world in as many as 75 countries.
The financial year 2013 witnessed a significant transformation with the IT/BPO sector focusing on enterprising solutions rather than mere services. The clients expect much more than services and expect the industry to guide them through the best aspects.
In addition, these solutions have been developed by largely leveraging SMAC (which includes smart, mobile, cloud and analytics). These solutions offer multiple benefits in terms of profit margins, cash flows, revenues, and others.
Future of IT and BPO industry
The world economy is poised for significant improvement with BRIOC nations being the places of innovation. Changes in technology are opening up newer opportunities which will drive the technology spending in 2013 by around 6%. The global sourcing will also grow by 9—11% to reach US dollars 135–140 billion.
IT/BPM revenue of India in the next financial year will see a growth of 13–15% US dollars 106–110 billion. The exports will contribute about 84–87 billion US dollars. However, in order to achieve this growth, the stakeholders in India will have to put some extra effort on a number of core areas.