IT Industry Expects 50% Growth In The Next Two Years

Dun & Bradstreet released its study on ‘India’s Top IT Companies 2008’. The study covers 210 companies, each having an annual turnover of more than Rs. 100 million.

The companies profiled in the study, account for about 50% of the Indian IT industry, in terms of revenue. The companies showed an average annual growth of around 56% for the period FY05-07 and expected to achieve an average annual growth of 50% over the next two years. Going forward, 96% of the surveyed companies displayed interest in growing through the organic or inorganic route. Offering value added services, expanding into new verticals and tapping new geographical locations among others emerged as the most popular paths to growth. IT support and infrastructure management and IT consulting are expected to be the growing service lines for the next year and BFSI, retail and distribution services proved to be the most promising verticals.

Kaushal Sampat, COO, Dun & Bradstreet India said, “The IT & ITeS sector has played a key role in the high growth being witnessed in the country’s services sector. Exports continue to contribute in a major way to the revenues of the Indian IT industry, accounting for around 66% of the total revenue of U$ 47.8 billion in FY07. Notably, services exports from India reached US$ 81.3 billion in FY07, out of which IT & ITeS-BPO contributed over 38.5%. The study revealed that Indian IT companies expect to maintain an average annual growth of 50% in the next two years, further expanding India’s position in global services exports.”

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“The industry needs to focus on nurturing talent, in order to maintain this growth momentum. Shortage of skilled manpower and high attrition rate emerged as bigger concerns compared to the appreciating rupee and rising salaries,” added Sampat.