February 21, 2012: The Indian Information Technology (IT) industry is estimated to grow at 11 to 14 per cent in terms of export revenue in the FY 2012-2013. The total revenue of the industry is expected to reach USD 100 billion towards the end of March 2012. These projections were made by NASSCOM regarding the performance of the IT industry in the next fiscal year. It is also predicted that the revenue from the domestic market will increase at a rate of 13 to 16 per cent. The information technology industry recorded a growth of 16.7 per cent during FY 2011-2012, while it was 16.3 per cent during the previous fiscal.
About 70 per cent of the revenue is contributed by the export revenue and the share of the IT-BPO in the country’s GDP is on the rise. Sources from NASSCOM say that the IT-BPO industry is projected to employ about 30 million individuals. It will include 5 million women employees and 4 million employees from small towns. It is expected that the rural BPO will create employment for 200,000 individuals. It is blue sky ahead for smaller companies too.
During the fiscal year 2012-2013, the IT-ITeS industry is expected to create employment opportunities for about 200,000 individuals. This is mainly credited to the increase in demand for services in the maturing markets and increase in the export of services to west even during the times of economic instability.
The Indian Information Technology sector has 560 delivery centers located across 70 countries. The share of the Indian IT industry in the global outsourcing industry has increased to 58 per cent in the current year. It was 56 per cent a year ago and it clearly indicates the growing importance of the Indian IT industry.
However there are many challenges that the Indian IT industry faces. One important challenge is the lack of proper infrastructure in most of the states across the country. Other important challenges are inadequate supply of power and shortage of talented professionals. NASSCOM says that it will work with the states to ensure that the infrastructural and power shortages are resolved and that the industry spread its wings in the rural areas too.
NASSCOM had earlier announced that the future of the industry is not clear and the projections made will be relooked in October 2012. But it is confident that there is no possible threat to the industry in the medium term.