The Hindu : Business : 25% increase in IT revenues in dollar terms: Nasscom

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25% increase in IT revenues in dollar terms: Nasscom

Special Correspondent

Industry reduces dependence on financial services

BANGALORE: Revenues of Indian software and business process outsourcing (BPO) industries have increased by 25 per cent in dollar terms in the first half of the current financial year, according to the National Association of Software and Service Companies (Nasscom).

More specific details would be available in December, Nasscom President Som Mittal said.

Mr. Mittal was addressing a press conference on the sidelines of the Nasscom IT Women Leadership Summit 2008 here on Wednesday. The “the unprecedented slowdown of the global economy” had created problems for the Indian IT and BPO industries. “However, the Indian IT industry remains an important part of the international delivery chain.” Although banking and financial services had been badly affected, sectors such as pharmaceuticals, health care, entertainment, and media remained unaffected by the global slowdown, he said.

Since IT services would continue to play an important part in the “international delivery chain, development centres will continue to grow,” he added. The Indian IT industry had reduced its dependence on revenues from financial services in the last few years (from about 60 per cent a few a few years ago to about 40 per cent at present), he said.

Impact on employment

Asked about the impact on employment in the IT industry, Mr. Mittal said companies would need to initiate “a deeper engagement with their workforce.” Net fresh hiring would increase during the current year, but at a slower rate, he said. Companies in search of newer markets would need to invest in “domain expertise.” Hiring is also likely to be done “closer to delivery schedules,” “Large companies”, Mr. Mittal said, “remain committed to offers they have made in campus recruitments.” The current low levels of attrition in the industry is a positive factor, he remarked.

Mr. Mittal said “Government spending in IT, particularly in e-governance, can have a significant impact on the fortunes of the industry. “Outlays have already been made in the last budget, we are not asking for any fresh allocations,” he said.

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