The IT-BPM industry in India is expected to see strong growth in the upcoming fiscal year 2014. Exports are projected to increase by 12-14% and domestic revenues are expected to rise by 13-15%, adding $12-15 billion in total revenues. New business models and emerging technologies like social media, mobility, analytics and cloud computing will fuel industry growth. The industry will continue to expand into new markets and solutions while transforming from tech partners to strategic business partners.

1. Positive Outlook for IT-BPM industry in FY 2014
a. Exports to grow by 12-14%; Domestic market – 13-15%; Industry to add revenues of USD 12-15 billion in FY2014
b. New business models, emerging technologies and markets driving growth
Changing business models, emergence of new technologies, buyer segments and solutions for emerging markets will
help India retain its position as the global sourcing leader and an emerging trustworthy innovation hub. This and
many other trends were revealed at the NASSCOM Strategic Review 2013 press conference today at Grand Hyatt,
Mumbai. The press conference was addressed by Mr. N. Chandrasekaran, Chairman, NASSCOM, Mr. Krishnakumar
Natarajan, Vice Chairman, NASSCOM and Mr. Som Mittal, President, NASSCOM, before the commencement of the
annual India Leadership Forum.
Way Forward – FY2014
Industry exports expected to reach USD 84-87 bn - growth rate of 12-14 per cent
Domestic revenues to grow by 13-15 per cent and reach INR 1180-1200 bn
SMAC (Social media, Mobility, Analytics, and Cloud) technologies to fuel growth
Future of industry -- a complete blend of services, products, solutions and platforms
Increase in global technology spending and opportunities created through adoption of disruptive technologies are
expected to propel growth in FY2014. NASSCOM expects the industry to clock export revenues of USD 84-87 bn
maintaining a growth rate of 12-14 per cent. Domestic revenues will also grow at a rate of 13-15 per cent and are
expected to reach INR 1180-1200 bn.
Mr. N. Chandrasekaran, Chairman, NASSCOM, said, “The Indian IT-BPM industry has demonstrated resilience and
agility in the past year. Technology has today become an integral enabler for growth across all sectors and the
industry is continuously evolving and innovating to emerge as a strategic partner to its customers. He further added
that, “The thrust is IP led solutions served over multiple platforms that has the customer at the centre of every
module, and is transformative in nature”.
Some of the key growth drivers that are expected to open new opportunities for the industry are smart computing,
„anything‟-as-a-service, technology enablement in emerging verticals and the SMB market. “Technology can also play
a critical role in enabling transformation in India and add to India‟s GDP. The domestic market in India is maturing, it
was the fastest growing market in the year and NASSCOM will look to partner with the government in enhancing
technology adoption in the country”, saidMr. Som Mittal, President, NASSCOM.
Review – FY2012-13
Industry exports reach USD 75.8 bn - growth of 10.2 per cent; constant currency – 10.9 percent
Industry‟s domestic revenues clock INR 1047 bn - growth of 14.1 per cent
Industry adds 188,000 jobs - direct employment – 3 million
IT Services - USD 50 billion sector, BPM - USD 20 billion sector, Engineering crossed USD 10 billion, Indian
software products – USD 2 bn
India is the only country that offers the depth and breadth of offerings across different segment of this industry – IT
Services, BPM, Engineering & R&D, Internet & Mobility and Software Products. IT Services is a USD 50 billion
sector, BPM is a USD 20 billion sector, Engineering crossed USD 10 billion and Software products, Internet &
Mobility are emerging opportunities. Today, existing and new companies are expanding their offerings to build India
as the hub for analytics, mobility, cloud, social collaboration and emerging verticals like healthcare and medical
devices.
Mr. Krishnakumar Natarajan, Vice Chairman, NASSCOM said “The rapid adoption of Internet and mobile is
creating enormous opportunities for entrepreneurship in the country. A growing ecosystem of early stage funding,
incubation and peer learning is creating innovative start-ups building technology solutions and products for India and
the global market. Initiatives like creating a strong and robust ecosystem for start-ups, innovation clusters and centres
of excellence (CoEs) will encourage entrepreneurship and build the next generation of Global companies from India”.
FY2013 – Review
Despite challenges in the global market, Indian IT-BPM industry sustained its growth trajectory and is expected to
clock export revenues of USD 75.8 bn with a Y-o-Y growth rate of 10.2 per cent. Domestic market also witnessed Y-
o-Y growth rate of 14.1 per cent taking the domestic revenues to INR 1,047 bn. The Indian IT-BPM sector continues
to be one of the largest employers in the country directly employing nearly 3 million professionals, adding over
180,000 employees. FY2013 can be characterized as the year of rapid transition and transformation leading the
industry into expanding into newer verticals and geographies, attracting new customer segments, and transforming
from technology partners to strategic business partners.
Europe despite the economic crisis, demonstrated higher acceptance of global sourcing with markets such as
Germany or France increasing outsourcing as a way to keep their costs under control and gain greater flexibility in
light of the increasingly volatile markets in the euro zone and beyond. At the same time, the industry explored
increasing opportunities in Asia, Africa and Latin America. Customer centricity was the key focus as the industry
expanded its global delivery model accounting for 580 global centres across 75 countries.

2. Conclusion
While the first USD 100 billion landmark can be attributed to the cost and quality advantage, the next USD 100 billion
will be a combination of higher-value services and increasing non-linear growth. To sustain this growth, Indian IT-
BPM industry is focusing on greater efficiencies, verticalized structures, geographical presence, IP based solutions,
domain and increased collaboration across all stakeholders.