Strategic Review 2011
2
Indian IT - BPO Performance The Indian IT-BPO sector is expected to reach USD 88.1 billion in FY2011, an aggregate growth of 19.2 per cent. Export revenues of IT and BPO services (excluding Hardware exports) i n FY2011 are expected to grow by 18.7 per cent. As a pr oportion of national GDP, the sector revenues have grown from 1.2 per cent in FY1998 to an estimated 6.4 per cent in FY2011. Its share of total Indian exports (merchandise plus services) increased from less than 4 per cent in FY1998 to almost 26 per cent i n FY2011. India Value Proposition Global sourcing is firmly established as an integral part of service delivery models, as enterprises continue to grapple with operating cost constraints and the need to invest in new growth initiatives and technologies. With USD 59 billion of the USD 106 billion global sourcing market, India is the undisputed leader in IT Services (IT, Engineering services and R&D) and BPO services sourcing. India has improved its share from 49 per cent in 2005 to 5 5 per cent in 2010 and now has a 70 per cent share of the global IT Services market (which is 18 percentage points higher than in 2005), and a 34 per cent share of the global BPO market. Global Outsourcing 2010 was a year of steady growth for the technology and related services sector, with worldwide spending expected to exceed USD 1.6 trillion, a growth of nearly 4 per cent over 2009. Software products, IT and BPO services continued to lead, accounting for over USD 1 trillion â 63 per cent of the total spend. Hardware spend, at USD 599 billion, accounted for the balance 37 per cent of the worldwide technology spend in 2010. Conclusion y Mid-2009 saw the global economy enter the recovery mode, which gathered pace in 2010. y By mid-2010, the gl obal IT-BPO industry witnessed positive signs of growth as IT budgets returned to pre-recession levels and there was a visible increase in the number of new projec ts. y This 2-3 year period also witnessed a shift in the drivers for global sourcing. While the outsourcing business was mainly cost-driven during the r ecession, going forward, CIO priorities are shifting from cost control to revenue growth. y Globally, CIOs now indicate that while they will continue to do more with less, their strategies are focused more on delivering projects that enable business growth and linking business IT strategies and plans. As a result, providing flexible capacity, access to new markets, and enabling innovation are emerging as the leading drivers of global sourcing. INTRO Indian IT service offerings have evolved from application development and maintenance, to emerge as full service players providing testing services, infrastructure services,consulting and system integration. The coming of a new decade heralds a strategic shift for IT services organisations, from a µone factory, one customer¶ model to a µone factory, all customers¶ model. Central to this strategy is the growing
Transcript of Strategic Review 2011
8/7/2019 Strategic Review 2011
http://slidepdf.com/reader/full/strategic-review-2011 1/2
Indian IT - BPO Performance
The Indian IT-BPO sector is expected to reach USD 88.1 billion in FY2011, an aggregate growth of 19.2
per cent. Export revenues of IT and BPO services (excluding Hardware exports) in FY2011 are expected
to grow by 18.7 per cent. As a proportion of national GDP, the sector revenues have grown from 1.2 per
cent in FY1998 to an estimated 6.4 per cent in FY2011. Its share of total Indian exports (merchandiseplus services) increased from less than 4 per cent in FY1998 to almost 26 per cent in FY2011.
India Value Proposition
Global sourcing is firmly established as an integral part of service delivery models, as enterprises
continue to grapple with operating cost constraints and the need to invest in new growth initiatives and
technologies. With USD 59 billion of the USD 106 billion global sourcing market, India is the undisputed
leader in IT Services (IT, Engineering services and R&D) and BPO services sourcing. India has improved its
share from 49 per cent in 2005 to 55 per cent in 2010 and now has a 70 per cent share of the global IT
Services market (which is 18 percentage points higher than in 2005), and a 34 per cent share of the
global BPO market.
Global Outsourcing
2010 was a year of steady growth for the technology and related services sector, with worldwide
spending expected to exceed USD 1.6 trillion, a growth of nearly 4 per cent over 2009. Software
products, IT and BPO services continued to lead, accounting for over USD 1 trillion â 63 per cent of the
total spend. Hardware spend, at USD 599 billion, accounted for the balance 37 per cent of the
worldwide technology spend in 2010.
Conclusion
y Mid-2009 saw the global economy enter the recovery mode, which gathered pace in 2010.
y By mid-2010, the global IT-BPO industry witnessed positive signs of growth as IT budgets
returned to pre-recession levels and there was a visible increase in the number of new projects.
y This 2-3 year period also witnessed a shift in the drivers for global sourcing. While the
outsourcing business was mainly cost-driven during the recession, going forward, CIO priorities
are shifting from cost control to revenue growth.
y Globally, CIOs now indicate that while they will continue to do more with less, their strategies
are focused more on delivering projects that enable business growth and linking business IT
strategies and plans. As a result, providing flexible capacity, access to new markets, and enabling
innovation are emerging as the leading drivers of global sourcing.
INTRO
Indian IT service offerings have evolved from application development and maintenance, to emerge asfull service players providing testing services, infrastructure services,consulting and system integration.The coming of a new decade heralds a strategic shift for IT services organisations, from a µone factory,one customer¶ model to a µone factory, all customers¶ model. Central to this strategy is the growing
8/7/2019 Strategic Review 2011
http://slidepdf.com/reader/full/strategic-review-2011 2/2
customer acceptance of Cloud-based solutions which offer best in class services at reduced capitalexpenditure levels.
