Indian IT-BPO Industry continues to exhibit resilience due to strong fundamentals

According to the findings of NASSCOM Annual Survey on performance of Indian IT-BPO industry, the sector reached USD 58.8 billion in FY2008-09 up from USD 52 billion in FY2007- 08. Export revenues for the Indian IT-BPO industry recorded a growth of 16.3 percent and clocked revenues of USD 46.3 billion in FY2008-09 up from USD 40.4 billion in FY2007- 08. The domestic segment grew by 21 per cent to register revenues of INR 570 billion in FY2008-09 from INR 470 billion in FY2007-08.

Announcing the results in HR Summit in Chennai, Pramod Bhasin, Chairman NASSCOM said the “forecast is good considering the current economic environment.”

“A significant highlight for this year was the thrust in the industry to re-engineer itself. Increase in fixed price contracts, shift from onsite to offshore and end-to-end transformational deals helped the industry to get over 90 per cent of repeat business,” felt Som Mittal, President NASSCOM.

NASSCOM also announced the Industry rankings for FY2008- 09. While TCS emerged as top exporter during the period followed by Infosys and Wipro. Genpact dominated the BPO space followed by WNS Global services, TCS BPO and IBM Daksh.

The last few weeks have witnessed some stabilisation in the demand environment with improvements in GDP growth rates, stock indices upswing that could indicate early signs of recovery. However, worldwide IT spending growth is expected to decline in 2009 and 2010. The environment continues to be challenging with global demand ecosystem being weak, absence of large deals, vendor consolidation and pricing pressures.

NASSCOM Top 20 IT Services Exporters 2008-09

Note:
• Includes IT Services, Engineering Services, Software Products and Offshore Product Development revenues

• Ranking is based on companies that have submitted the detailed form. It does not include Mahindra Satyam whose revised audited revenues are not available

• This list does not include some companies whose corporate headquarters are located outside India, but have
significant India-centric delivery capabilities, and have not shared their India-centric revenue figures. Had they been ranked based on their India revenues, companies such as Accenture, Cognizant, HP and IBM and would have also appeared in this ranking

FY2008-09 highlights

• FY2008-09 export revenues aggregate USD 46.3 billion recording a growth of 16.3 per cent
• Domestic IT-BPO market clocks INR 570 billion; exhibits 21 per cent growth
• Offshore component to increase
• Growth in emerging geographies, APAC, RoW 3X of US and UK
• Domestic market drives growth – Large transformation deals in telecom,

e-governance

NASSCOM Top 15 BPO Exporters 2008-09

Note:
• This list does not include some companies whose corporate headquarters are located outside India, but have significant India-based delivery capabilities, and have not shared their India-based revenue figures. Had they been ranked based on their India revenues, companies such as Convergys and Sutherland Global Services would have also appeared in this list

• Since several companies are privately held, in order to maintain uniformity, revenue figures for the ranked companies are not being shared

NASSCOM Top 20 IT-BPO Employers 2008-09

Note:
• This list is based on the India-based headcount of firms with IT-BPO operations in India, as reported to NASSCOM in its annual survey. Based on publicly available information, few other MNC’s such as Accenture and IBM would have also featured in this list. However, as they have not participated in the survey, we do not have all the required details and are unable to rank them. Most companies on this list are engaged in IT as well as BPO

• Companies marked with an * indicate pure-play BPO firms

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