Indian outsourcing trade body forecasts recovery

Nasscom said India's exports will likely grow by 12 to 14 percent year-on-year

India's provision of outsourcing services to other countries will grow by 12 to 14 percent in the fiscal year starting April 1, a trade body predicted Tuesday.

Demand for outsourcing services has been slowly picking up, according to analysts. Top Indian outsourcing companies including Tata Consultancy Services and Infosys reported better revenue and profit growth in the fourth calendar quarter of last year.

The National Association of Software and Services Companies (Nasscom) now forecasts that India's exports of software and services will be between US$84 billion to $87 billion in the Indian fiscal year from April 2013 to March 2014.

Exports are expected to reach $75.8 billion in the current fiscal year, a year-on-year growth rate of 10.2 per cent, Nasscom said.

Analysts have forecast an improvement in India's outsourcing industry, which was hit for many quarters by shrinking budgets and a slowdown in decision making by customers in the U.S. and Europe.

The offshore market for outsourced services is expected to grow by 12 to 15 percent this year, as more customers are expected to increase IT spending, according to research firm Offshore Insights.

But to bag the new business, companies will have to move from a revenue model that is largely dependent on the number of people working on a project to one that is based on intellectual property and replicable processes, outsourcing executives said.

Customers also prefer that their suppliers are located close to their operations in key markets in the U.S. and Europe, which will require larger expenditure on setting up facilities and local hires in these countries, said Ashok Vemuri, head of Americas at Infosys, during a recent interview.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags servicesinfosysoutsourcingNASSCOMTata Consultancy Services

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?