Nasscom Expects Indian IT And BPM Industry To Grow Much Faster Than GDP

CIOReviewIndia Team | Thursday, 13 February 2020, 13:40 IST

Nasscom Expects Indian IT And BPM Industry To Grow Much Faster Than GDPAccording to Nasscom, Indian IT and BPM industry is expected to grow more than 8% in constant currency USD 191 billion by end of 2020. This growth rate is marginally lower than the fiscal of previous year.

“The growth is seen to underscore the resilience of the Indian IT sector in a fragile global environment marred by geopolitical risks, trade sanctions and customers in its mainstay banking and financial sector turning cautious on tech spending. In reported numbers, it is expected to close the year with 7.7% growth,” Nasscom said at the annual edition of its Strategic Review in Mumbai.

The Indian IT industry added 2.1 lakh people this year which is the highest as compared to last four years.

As criticised out in the industry, Nasscom decided that it will no longer give growth forecast that cites a dynamic technology landscape and replaces it with CEO survey to call out qualitative data points. 100 CEOs were surveyed among which 35% expected a stronger world economy in 2020.

Current year IT exports is expected to grow 8.1% to USD 147 billion compared to USD 136 billion previously. Domestic business is expected to grow from USD 41 billion to USD 44 billion. The growth is followed by engineering service and software products that grew 11% and 9.6% respectively. Ecommerce is recently added category which has been expected to grow at a scorching pace of 25.6% to USD 54 billion.

“It gives you the sense of the actual performance at a time when there’s uncertainty outside. Indian IT now contributes 8% to the national GDP, and the hiring momentum is significantly higher than last year, despite individual companies announcing corrections. There is so much negativity and protectionist themes playing out, all the issues the industry might have faced around visas, Brexit and other headwinds. Yet, it has delivered well ahead of what we would reasonably expect,” said Nasscom Chairman Keshav Murugesh at the 28th edition of the Nasscom Technology and Leadership Forum (NTLF) 2020, in Mumbai. He is also the group CEO of WNS Global Service.

As a reflection of the growth momentum in newer digital imperatives like cloud and analytics, digital revenue will grow up to 23% in this fiscal year.

“During the 2009-2019 fiscals, the industry added USD 105 billion in revenue, created 2 million jobs, bought in over USD 50 million in FDI investments, and created over 10,000 tech firms including 27 unicorns, what we are beginning to see is India inside global innovation across the world. Top companies are setting up R&D here and some of the global start-ups are also setting up their centres here which is a huge recognition of talent and capabilities that we have in India,” said Nasscom President Debjani Ghosh.

Don't Miss ( 1-5 of 25 )