Industry Overview & Key Trends

NASSCOM Report on the Future of Indian IT-BPO Industry (March, 2015)

Revenues Trends for the Indian IT-BPO Industry (in billion USD)

2015 is estimated to be a landmark year for the Indian IT - BPO industry with the sector set to cross a significant milestone i.e. aggregate revenue for FY 2015 is expected to cross USD 100 billion while exports are at USD 74 billion.

Key Highlights of FY 2014 – 2015 from the NASSCOM Report

The year saw renewed demand for overall global sourcing which recorded a healthy growth driven by record contracting activity in small size deals, as clients aim to conserve cash flows and at the same time try out new models and service offerings.

Within the global sourcing industry, India was able to increase its market share from 51 per cent in 2011, to 58 per cent in 2014, highlighting India’s continued competitiveness and the effectiveness of India-based providers delivering transformational benefits.

The industry continues to be a net employment generator - expected to add 230,000 jobs in FY2015, thus providing direct employment to about 2.8 million, and indirectly employing 8.9 million people.

While the global macroeconomic scenario remained uncertain, the industry exhibited resilience and adaptability in continually reinventing itself to retain its appeal to clients. Embracing emerging technologies, increased customer-centricity, deepening focus on new markets and adopting new business models are some successful growth strategies followed by the industry.

Emerging geographies (particularly Asia Pacific and EMEA) gain greater focus as they become the highest IT adopters growing nearly twice as fast as mature geographies. A key area of focus for cost optimization continues to be transportation costs. Also, while cost and talent still remain essential considerations for global sourcing, there has been an increasing shift to Tier II locations as organizations continue to tighten the spend on direct employment costs.