IT, Outsourcing Growth Seen Dropping To 30%

The annual growth of India's IT and BPO industries may fall to 30% for the next four years, after expanding by 35% in the past two years, says a study.

hidden June 20, 2007 16:44:25 IST
IT, Outsourcing Growth Seen Dropping To 30%

The annual growth of India's IT and BPO industries may fall to 30% for the next four years, after expanding by 35% in the past two years, says a study.

Nevertheless, both large and smaller companies in the two industries in India have seen a faster growth than their peers globally at the expense of Western firms, says the study by the Associated Chambers of Commerce and Industry.

"Over the years, most of the Indian IT services and BPO players have been moving up the value chain and in most cases are integral to the business of the client," chamber president Venugopal N. Dhoot said.

"Considering the positive outlook toward Indian IT/BPO service industry, private equity and venture capital investors are looking at investing in these companies to be part of India growth story," he added.

The study says investors were particularly looking at picking up stakes in niche companies like Flextronics that specialises in telecom, Geometric Software that has major presence in engineering services and Applabs in software testing.

The study says the one merger and acquisition that grabbed global attention was when the US-based EDS acquired 52% stake in the Indian BPO firm Mphasis-BFL for $380 million.

IANS

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