Chennai (PTI): After a dream run for years, India's export revenues from software and services industry is expected to see just 4-7 per cent growth this fiscal and the downturn is likely to continue till mid-2010, industry body Nasscom said.
The software and services exports revenue may grow by 4-7 per cent in FY 2009, Nasscom Chairman Pramod Bhasin told reporters here while pointing out that the software and services industry has done remarkably well, despite the global meltdown.
"While there are signs of (market) recovery, the industry has performed well to the growth rate it had... in turbulent times," Mr. Bhasin said.
Export revenues from the IT and BPO sector, he said, may see 16.3 per cent growth from $40.4 billion in 2008 to $46.3 billion in 2009.
Moreover, the core markets like banking and financial services industry have started to stabilise and increased investments are expected to yield results in the year aheads, he stated.
Business Process Outsourcing Sector growth would be led by procurement outsourcing, analytics and also by the KPO.
Stating that this is one the worst recession that the world has seen he said, "Opportunities exist in health care, retail, eduation sectors."
Mr. Bhasin said the manufacturing and telecom are key growth verticals and firms, including the mid-sized ones, are expected to increase their budgets to improve efficiency.
However, he said the recovery is expected by mid-2010.
Nasscom President Som Mittal, who was present on the occasion said the domestic market grew by 21 per cent to register revenues of Rs 57,000 crore in FY 2008-09 from Rs 47,000 crore in FY 2007-08.
In the export segment, Mr. Mittal said, IT services have grown by 14.7 per cent to register revenues of $26.5 billion. Engineering services and product exports clocked revenues of $7.1 billion growing at 11 per cent in FY 2008-09.
"The industry in the first quarter results has demonstrated sustained focus with increased operating margins and enhanced utilisation. The Nasscom survey estimates that the IT-BPO export revenues will grow by 4-7 per cent to reach $48-50 billion in 2009-2010," he said.
While, the domestic BPO revenues may grow by 15-18 per cent to reach Rs 65,000-70,000 crore, he added.
Stating that in FY 2008-09, the industry gave direct employment to over two lakh people, and in this fiscal it expects to hire 10 per cent more.
"The direct employment was 2,00,000 and it will be increasing to 2,20,000 in FY 2009-10," he said.
Source : The Hindu