IT-BPM to grow 8.6% to $155bn

Hyderabad: Captains and experts in the domestic IT industry see a growing need for the companies to restructure and focus on capacity development to address the digital opportunities.

Industry body Nasscom forecasts that despite odds, the Indian IT-BPM industry is projected to grow at a rate of 8.6 percent to reach over $155 bn in 2016-17 financial year.

Digital technology will drive the next level of transformation of the technology sector, opine the industry representatives at Nasscom India Leadership Forum. Nasscom aims to provide skill enhancement training to two million youngsters over next five years.

IT industry leaders CP Gurnani, Chairman, Nasscom, Raman Roy, Vice Chairman, Nasscom, and R Chandrashekhar, President, Nasscom, spoke on key issues at 25th edition of the annual Nasscom India Leadership Forum in Mumbai on Wednesday.

They said that technology companies were actively exploring new engagement models. Outgoing TCS chief N Chandrasekaran said that H1-B visa concerns were hyped up.

The Indian technology industry is growing on the transformation path to become a digital technology industry by developing its digital capabilities and reorganising itself to make the most of this opportunity.

Sharing his views, Gurnani said: “The digital tsunami is reshaping our industry the priority is to reimagine businesses and unlock new opportunities.

The Indian IT-BPM Sector is emerging as a digital solutions partner for global corporations and we are excited to work across stakeholders – customers, start-ups, academia and others to build this exciting future.”

R Chandrashekhar said that “while there are some uncertainties in the short term, the initial data from global analysts on tech spending in 2018 is promising, We are initiating deeper interactions with all stakeholders to get a more reliable and clear perspective on the projections for FY2018 and will give the guidance in the next quarter.”

The future skills work group at Nasscom, in partnership with BCG, is working together with the industry on a two-pronged approach to enhance the skills ecosystem - skills vs job-specific curriculum and tech-enabled learning ecosystem. The initiative aims to skill or reskill about 1.5-2 million people over next five years.

Amidst disruptions, political upheavals and slowdown in global spending, the Indian IT-BPM industry is projected to grow at a rate of 8.6 percent (in constant currency) to reach over $155 bn in FY2017, forecasts Nasscom.

IT-BPM exports from India may reach $118 billion. The domestic IT-BPM market is expected to grow by 12 percent YoY to reach Rs2,545 bn.

The industry currently employs over 3.86 mn people, growth of five percent and addition of 1.7 lakh people over FY2016. In terms of the markets, US and APAC are fastest growing at 7.8 percent with gradual stabilization in the growth of the European market.