India's IT and BPO industry is set to narrowly miss its growth estimate for this fiscal year, but is staying bullish on the year to March 2014.
Buoyed by strong third quarter results of major IT companies, industry association Nasscom said on Tuesday that IT and IT-enabled service exports were expected to grow by 12 to 14% in the new year starting April, with export revenues touching $87 to 84 billion as recovering US and European markets and emerging markets alike see increased spending.
The industry is expected to close 2012-13 with 10.2% growth, with revenues at $ 75.8 billion, slightly lower than the lower end of Nasscom's 11-14% growth forecast and significantly lower than the previous year's 16.3% growth.
Nasscom said domestic revenue for the IT sector will grow by 13-15% to Rs. 120,000 crore (around $22 billion) in 2013-14. At current exchange rates, this puts the industry a little short of the $100-billion mark that was earlier expected.
Nasscom said that IT industry will end the current year with an addition of 1,88,000 jobs, taking the total industry headcount to three million.
N Chandrasekharan, chairman of Nasscom and chief executive officer of top-ranked Tata Consultancy Services, said robust spending in IT in key markets is expected to continue in "the foreseeable future."
In its annual strategic review, Nasscom said that social media, mobility, analytics, and cloud (internet) technologies will fuel future growth.
"While the first $100 billion landmark can be attributed to the cost and quality advantage, the next $ 100 billion will be a combination of higher-value services and increasing non-linear growth," it said.