'Indian IT should eye UK markets' | india | Hindustan Times
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'Indian IT should eye UK markets'

A right strategy and approach may be to look at acquisitions to gain an entry into the European markets, they feel.

india Updated: Feb 16, 2006 13:26 IST

Europe and UK markets will provide the next biggest opportunity for Indian IT companies that are looking beyond traditional destinations for offshore and product development businesses.

A panel of industrialists at the Nasscom Leadership Forum in Mumbai said these markets would help Indian IT firms to post the expected growth rate of 40 per cent in the next fiscal if the firms made a direct marketing approach in these emerging markets.

"The European market is the biggest opportunity for the Indian companies, next only to the US.

"The country can post a 40 per cent growth, by taking a go direct to market approach and a combination of India and other nearshore-based delivery operations" N Chandrsekharan, executive vice president and head global operations of Tata Consultancy Services (TCS) said.

A right strategy and approach may be to look at acquisitions to gain an entry into the European markets, he added.

According to Nasscom estimates, Indian IT and ITeS sector revenues are expected to grow at 28 per cent in the current fiscal at $36 bn and the study said it would grow at 40 per cent in the next fiscal.

Nasscom President Kiran Karnik said, "UK is the major destination, not only as a potential market but also for development works."

The industry trend that has been noticed in recent years was the expansion of the Indian IT industry's presence from beyond traditional destinations to newer geographies, he added.

On exports, Karnik said Europe remained to be one of the potential markets, accounting for over 90 per cent of IT-ITeS exports.

However, export earnings from markets other than the US and the UK were also witnessing significant double-digit year-on-year growth, he said.

Indian ITeS-BPO exports are expected to reach $6.3 bn by the end of the current financial year.