According to the National Association of Software and Service Companies or NASSCOM, India’s outsourcing industry has witnessed a rebound in growth. The country’s exports from Information Technology and Business Process Outsourcing services will grow by 18.7 percent to US$59 billion in the current fiscal year ending in March 31. The revenue by the figure includes exports by Indian outsourcers as well as by Indian subsidiaries of the multinational companies who use their Indian subsidiaries of the multinational companies who use their Indian operations to service their own and their clients requirements. The US and Europe accounts for most of these exports.
The Nasscom said that a return of the discretionary spending by the customers and new business models that encouraged first time buyers were some of the key drivers for the performance of the industry in the current fiscal year. The Indian outsourcers benefited in the current fiscal year from the pent-up demand, arising from the expenditure that was postponed during the recession. The research director at the Everest Group. The growth rates may fall a little in the coming months as the industry gets back normal growth without the benefit of the pent-up demand. The growth in the exports in the next fiscal year is likely to be 16 percent.
For the quarter ended Dec31, the top Indian outsourcers like Tata Consultancy Services and Infosys Technologies stated about the strong growth in the revenue for the quarter, it indicates that the industry is on the rebound. The domestic market for the outsourcced services also likely to grow by 16 percent in the current fiscal year to 787 billion Indian rupees. The India will add 240,000 staff in Information Technology services and Business Process Outsourcing by March 31, this takes the total employment in the sector to 2.54 million
The analyst said the the surge in the demand for the offshore outsourcing is p0ushing up costs in India as the Indian outsourcers and Indian operation s of the multinational service companies like IBM and accenture vie for the staff costs and the attrition rates are on the increase. The indications are that hiring in the next fiscal year will continue at the same momentum. Some of the companies may try to contain costs by hiring from the campus. The large companies are also now equipped to train the campus recruits and get then on the job quickly.
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