IT Services

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Annual Review

Outlook

Indian IT industry has been a torchbearer for the Indian services exports, earning visibility to the country in the global technology space. This chapter offers an outlook on the global and the Indian IT industry in terms of exports and domestic market. It follows the trend of IT exports from the country with respect to the verticals and services offered and also illustrates the profitability and challenges of the industry.

The following points are covered in the chapter-

  • Global economic outlook – remains positive for global GDP
  • Few Sweet Spots in U.S. Economy in terms of the labour market and PMI
  • Outlook on Global IT Industry – slow growth leading to a faster pickup
  • Outlook on IT Outsourcing – Revival expected over next two years
  • Outlook on Indian IT Services Exports – to rebound by FY14 and FY15
  • Growth to be driven by shift to Cost Arbitrage rather than Incremental Spending
  • Rupee depreciation to have a marginally positive impact
  • Outsourcing Contracts shrinking in size
  • Vertical-wise Exports – newer verticals to drive growth
  • Outlook on Domestic IT Services – set to outperform exports growth in the near term
  • Profitability – No pressures in the near term
  • Emerging Trends - Rising non-linearity
  • Regulatory Overhang – New Immigration Bill in the U.S.

Impact Analysis

  • SMAC – New Wave of Opportunity

    Indian IT services conquered the global technology landscape capitalizing on India's low-cost, English-speaking talent pool. Over the years, Indian IT.....

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