IT'S RECOVERY TIME!!!
IT/ BPO SECTOR EYE ON 15% GROWTH
One can't ask more than this, "The IT/ BPO sector is aiming at 15% growth rate in the fiscal year 2009-10," said the National Association of Software and Service Companies. The NASSCOM BPO Summit held in on 9th and 10th of June 2009 has given as many as reasons to glee about the industry. The BPO industry is forecasted recover from the down trend by the later half of the running fiscal year. The growth rate of the outsourcing industry is expected to remain at 6.5% in the fiscal year. The profitability expected out of 15% growth rate of the outsourcing industry is US $60 Billion by end of the fiscal year. The pre-recession growth rate of outsourcing industry was about 30%. But then, this growth rate is remarkable during recession hit period. We know many manufacturing/ production based industries could not withstand the down trend and they went on to shut down. The IT/ BPO industry significantly has survived the recession and has now began to pull back things normal.
The BPO industries, the industrial leaders and experts are quite optimistic about the scenario. The BPO market emerges persistently and the outsourcing service providers has to affront a number of confrontations like setting up new strategies to the evolving market with increased competition and unlimited customer needs. In past one year, an extreme transformation in customer demands and expectation was seen. The outsourcing companies faced a bigger challenge to fulfill their clients.
Pramod Bhasin, chairman, National Association of Software and Service Companies, said recession has affected the primary markets and has put forth multiple challenges to the outsourcing industry. The industry must overcome challenges like price reduction, foreign competitors, and protectionism by identifying fresh market for growth and to strategize their operations to improve efficiency. Pramod, also said the public sector will involve in providing large business contracts for companies. Knowing this the service providers has now widely shifted their focus on clinching opportunities in government, telecom and insurance sectors in the local market. The industry has transformed their strategies and approaches to fit the local market.
Finally, Som Mittal, president, Nasscom said that the BPO industry is well supported by the government by extending the fiscal benefits. He support is very necessary and important for small-medium industries that facilitates consistent growth, has provided incentives under the Special Economic Zone scheme and encouraged the industries in smaller cities. The outsourcing providers have got exceptional scope for growth and increased profitability in the new segments. The results the development of new strategies, where the outsourcing providers can add value to their clients and helps to capture a large market.