STPI looks at double-digit growth in IT exports

Source: The Hindu Business Line, Feb 17, 2020

Hyderabad: India is targeting revenues of $70-80 billion from software products by the end of 2025. The country, which has emerged as a major player in software exports, is yet to tap the $500-billion software products market.

“We are currently getting revenues of $80-90 billion from software products whereas the global opportunity stands at $500 billion. It is going to grow to $1 trillion by 2025,” said Omkar Rai, Director- General of Software Technology Parks of India (STPI).

The country has launched a policy to increase the software product segment. To make this happen, tier-II and tier-III cities too should contribute.

He said exports (from STPI registered firms) would grow by double digits in the current financial year. “We will compile the figures in September. The STPI exports for the year 2018-19 stood at ₹4,24,000 crore,” he said.

Citing the numbers released by Nasscom (National Association of Software and Services Companies) recently, he said the figures compiled by the IT association pegged IT exports at $147 billion in revenues in 2019-20, an 8.1-per-cent growth over last year’s numbers. The IT and electronics sector as a whole registered revenues of $191 billion as against $177 billion in the previous year.

India’s IT sector to grow 7.7% in FY20: Nasscom

Source: The Economic Times, Feb 13, 2019

BENGALURU: India’s information technology and back-office sector is expected to grow 7.7% in fiscal 2020 to $191 billion, with exports touching $147 billion, the National Association of Software and Services Companies said on Wednesday.

The industry body said the sector added 2,05,000 jobs in the ongoing fiscal year, up from the 1,85,000 jobs it added in FY19. The sector is still ‘cautiously optimistic’ about the next financial year starting April, officials said.

Nasscom president Debjani Ghosh said it was a “good” performance by the sector. “Any industry that delivers more than 7% growth is a strong industry. We cannot tell if this is the new normal, but when the world economy is growing at about 3%, then this is good growth,” Ghosh said.

Nasscom senior vice-president Sangeeta Gupta said the industry added $14 billion in new revenue, a significantly higher amount than in the past. “It is important to look at this as the (revenue) base increases,” Gupta said.
Since last year, Nasscom discontinued issuing annual growth forecast before the start of the year. Instead, it shares a survey of global CEOs on their confidence in spending on technology. According to the latest survey, 57% of CEOs expect FY21 growth to be similar or better than FY20.

Accenture launches largest interactive experience centre in Mumbai

Source: Business Standard, Sept 24, 2019

Mumbai: Software consulting giant Accenture has opened its largest interactive experience centre in Mumbai.

This is the sixth such facility by Accenture Interactive, the marketing managed services arm of Accenture, which contributed $8.5 billion to the company’s business in 2018.

This centre serves as the hub of Accenture’s “experience activation network” – a collection of state-of-the-art sites worldwide that deliver marketing and brand solutions. “We have one of the most powerful experience activation networks globally and Mumbai is the largest and most important centre within that network.

The solutions here will focus on data analytics and insights, target segmentation and content creation along with customisation apart from programmatic delivery and measuring the performance of campaigns on a daily basis, ” said Nikki Mendonca, President, Accenture Interactive Operations. Read the rest of this entry »

HCL Tech overtakes Wipro to become third-largest IT services firm in India

Source: Business Standard, May 10, 2019

New Delhi: HCL Technologies (HCLT) on Thursday surpassed Wipro to become the third-largest IT services firm in India in 2018-19, making the first change in the pecking order of the country’s $170-billion IT outsourcing industry in the last seven years.

The Noida-based IT services firm announced its revenues touched $8.63 billion in the last financial year, a rise of 10 per cent over the previous financial year.

In constant currency terms, the rise was 11.8 per cent.

Wipro, in comparison, posted IT services revenues of $8.12 billion, up 3.8 per cent over the preceding financial year.

Last year, Wipro’s full-year revenue totalled $8.06 billion, more than $220 million above HCL Technologies’ $7.84 billion. Read the rest of this entry »

Why the IT industry in India may be staring at a decline in growth this fiscal

Source: LiveMint.com, Apr 08, 2019

MUMBAI: What goes up must come down. India’s information technology (IT) exports are estimated to have risen 9.2% in FY19, faster than the 7.8% growth in the preceding fiscal, according to industry lobby group Nasscom. With major IT companies set to report FY19 results and provide an outlook for the new fiscal, a moot question is if growth rates will scale down.

After all, apart from the high base effect for some companies such as Tata Consultancy Services Ltd, the industry needs to contend with a global slowdown. This double whammy has already hit growth at Accenture Plc, which reported results for the quarter ended February late last month. The company’s financial year starts in September and ends in August.

In the quarter ended August 2018, Accenture had reported revenue growth of 11% in local currency terms. But this year, growth slowed to 9.5% and 9% in the first and second quarters, respectively. Based on its guidance for the rest of the year, growth is estimated at 8.5% and 7% in the third and fourth quarters, respectively. Read the rest of this entry »

IT firms compete for larger share of global engineering services contracts

Source: Business Standard, Mar 11, 2019

Bengaluru: Engineering services have emerged as the next growth segment for Indian IT services players with most firms taking aggressive steps to corner a larger share of the outsourcing deals. For instance, companies such as Infosys, with lesser presence in some segments of engineering services, have now reoriented their strategy to clinch more deals from marquee clients.

Many analysts are of the opinion that Infosys’s wining contract from Rolls-Royce is an outcome of such strategic moves.

According to a HFS Research report released last year, HCL Technologies was at the top spot among domestic IT services players, while it was ranked number four globally in this segment. Tata Consultancy Services (TCS) had been placed at sixth spot, followed by Wipro at seventh in the global list. According to the research firm, French company Altran was the global market leader in the engineering services space. Read the rest of this entry »

Cabinet approves National policy for software products

Source: The Economic Times, Feb 28, 2019

The Cabinet Thursday approved a national policy on software products that aims to position India as a hub for software products development and creating 65 lakh jobs by 2025.

“India’s IT revenue is USD 168 billion but most of it is services. Software product component is less, it is just USD 7.1 billion. Most of the software products are imported. The software product policy is designed to make India a big centre of software products by 2025,” IT Minister Ravi Shankar Prasad said after the Cabinet briefing.

This policy has a scope of giving employment to nearly 65 lakh people and will have enormous revenue benefit, he added.

The nod to the software products policy comes just days after the Cabinet cleared a new national electronics policy, and underscores India’s aggressive attempts to position itself as a global player in the tech domain that is gearing up for Artificial Intelligence, big data, Internet of Things and robotics. Read the rest of this entry »