NASSCOM predicts 11% growth in IT-BPO sector in 2012-13: Good news for MPO industry


India continues to be the hottest destination for companies to outsource its business processes. Cost, people, and environment are the main attractions that prompt companies to look for Indian outsourcing. In effect, top IT companies of India are contributing to 40-50 percent of the entire export revenue.

By the beginning of this fiscal, the National Association of Software and Services Companies (NASSCOM), has predicted a growth rate of 11-14% for the information technology-business process outsourcing (IT-BPO) industry. By the end of this financial year, NASSCOM claims the industry would record growth of 11 per cent and revenue of $75-77 billion.

NASSCOM conducted the study in various Indian companies that are scattered across diverse sectors like research & development, BPO, IT services, and engineering and products. They cite factors like change in currency values, slow growth in main business centers, and unsteady growth of IT-BPO service providers as the reasons behind the slow down growth of the sector. In fact every company is in a different environment and has a different story to explain for their reduced growth.

Apart from the factors mentioned above, IT BPO sector is facing certain other challenges also. Challenges are internal as well as external.  Lack of competent professionals and high attrition rates are some of the internal challenges. External challenges come in the form of opposition from political parties and labor unions for shifting local jobs to India.

Top level IT firms, ranked between 1and 5 are also responsible for the reduced growth figure of 11%. Generally companies including Wipro, Infosys, and TCS contribute 40-50 percent of the entire export revenue. But this time, the share of majors like Infosys and Wipro has come down considerably.

Challenging situations can be tackled with strategic planning and with proactive business thoughts. IT-BPO sector is striving to improve its performance and thus to increase their performance in the coming year. This development is really good news for MPO sector as well. The MPO industry anticipates that there will be increase in projects in the coming years as there would be a rub off effect from the BPO industry in general. The companies really need to gear up for the challenges and opportunities that arise in future.



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