The National Association of Software and Services Companies (Nasscom) recently predicted that by March 31, 2013, developments in Indian IT exports services, business process outsourcing (BPO), and related services will decrease by 11 to 14 percent from the current fiscal year’s 16.3 percent.
Deferred procurement decisions by customers and a vague economic environment like the one in Europe were some of the factors that have affected the forecast.
Salil Dani, Research Director for Global Sourcing at advisory and research firm Everest Group said growth will be flat for the first half of this year, unless Europe will be able to recover from its current economic situation. Also, global outsourcing revenue dropped 15 percent during last year’s Q4 compared to Q3.
Meanwhile, Sudin Apte, Principal Analyst and CEO of consultancy firm Offshore Insights, said IT budget is also being affected; it is decreased or remains the same. He added that clients are no longer on the side of providers and are careful in adopting new technologies like the cloud, mobile capability, etc.
Nasscom said the business process outsourcing industry in India is expected to grow by 13 percent valued at $16 billion, and exports are predicted to reach $69 billion.