New Delhi: The information technology (IT) sector In India is to grow by 4%-7% this fiscal and is expected to attain a double-digit growth in the next fiscal starting from April 2010.
According to Som Mittal, president of the National Association of Software and Services Companies (Nasscom), the country is already witnessing changes in trends that had been anticipated.
The economic activity in the country is apparently speeding up, the technology companies are hiring again, and acquisitions and mergers are on the cards.
On the many acquisitions that the business process outsourcing (BPO) firms are considering, Som Mittal said the BPO industry in India has been mainly eying countries like China and in Europe.
There are come factors, he added, based on which Indian companies look for acquisition, like seeking “to eave their footprints” on the English-speaking regions of the world. India has now attained the window to acquire capabilities in the English-speaking countries, since as much as 80% of the firms at present comes from those regions.
Though the first half of the fiscal has been rather flat, the vector has been right, and hence the anticipation of more growth this year as well as of a double-digit growth in the next fiscal, Mittal told reporters on the sidelines of the India Economic Forum of the World Economic Summit held in New Delhi.
The IT industry, however, is unlikely attain the huge growth rate it had recorded till 2007.
The growth rate of around 30% achieved for an entire decade is very hard to maintain, Som Mittal said. The IT sector, in the next 10-12 years, will get bigger at a compounded annual growth rate of 14% – that is, it is estimated to jump from the $50 billion in 2008 to around $225 billion.
The IT industry can achieve this goal only if it enhances its capabilities to meet the rising demand, Mittal warned, adding that, instead of functioning only in 6 major cities, the IT industry should move to 43 other cities that have been identified.
Even as Nasscom is upbeat about growth in the IT sector returning to good growth, Som Mittal said that it was too early to revise the guidance upwards.
The technology company Accenture has announced that it will raise its staff strength by 8,000 in 2010, mainly in the analytics department.
Infosys BPO, the back-office wing of Infosys Technologies, has said it will hire nearly 2,000 people by the end of this fiscal.