As another tumultuous year comes to an end, India's $100-billion (Rs 5.5 lakh crore) software services sector that directly employs about 25 lakh people is gearing up for bigger challenges. In 2013, growth will not be a given; it will have to be earned. Here is a quick look at what lies ahead for the information technology services industry.
IT export business
Nasscom expects India's IT exports business to meet the lower end of 11%-14% growth in FY12. However, analysts have a more conservative outlook due to the slowdown in Europe and continuing uncertainty in the US.
Cloud
Cloud remains a buzzword, with insiders expecting significant pick up in actual contracts in 2013. As cloud helps in cutting capital expenditure, cost-conscious large corporations are testing the waters.
Data Analytics From large retail chains to investment banks, corporations across the world are leveraging data analytics technology for better decision making and to predict customer behaviour.
Mobility India's IT providers create mobile applications for some of the world's largest organisations. As the number of mobile phones and tablets increase, this segment is expected to be an important revenue generator.
Rising visa costs & denial rates
India's IT services sector is facing increased scrutiny from US immigration officials as the political backlash against outsourcing continues. Industry body Nasscom estimates that in 2012, theUnited States issued 102,000 work visas, of which 60% went to the Indian IT industry. Analysts expect the Indian IT industry to witness higher visa denial rates and visa costs in 2013.
Higher technology adoption and outsourcing by Indian corporations and government is expected in 2013, opening up new opportunities for IT services companies with meaningful India presence.
Consolidation in IT sector If 2012 was the year of acquisitions for large-caps Infosys and Wipro, in 2013 mid-tier IT providers are expected to be active on the consolidation front. Companies like Hexaware, L&T Infotech, iGate, Persistent Systems etc are said to be scouting for possible acquisitions. In 2012, Infosys bought Zurich-based consultancy firm Lodestone, while cross-town rival Wipro bought Australia-based analytics provider Promax; Mumbai-based Tech Mahindra made two acquisitions.
IT export business
Nasscom expects India's IT exports business to meet the lower end of 11%-14% growth in FY12. However, analysts have a more conservative outlook due to the slowdown in Europe and continuing uncertainty in the US.
Cloud
Cloud remains a buzzword, with insiders expecting significant pick up in actual contracts in 2013. As cloud helps in cutting capital expenditure, cost-conscious large corporations are testing the waters.
Data Analytics From large retail chains to investment banks, corporations across the world are leveraging data analytics technology for better decision making and to predict customer behaviour.
Mobility India's IT providers create mobile applications for some of the world's largest organisations. As the number of mobile phones and tablets increase, this segment is expected to be an important revenue generator.
Rising visa costs & denial rates
India's IT services sector is facing increased scrutiny from US immigration officials as the political backlash against outsourcing continues. Industry body Nasscom estimates that in 2012, theUnited States issued 102,000 work visas, of which 60% went to the Indian IT industry. Analysts expect the Indian IT industry to witness higher visa denial rates and visa costs in 2013.
Higher technology adoption and outsourcing by Indian corporations and government is expected in 2013, opening up new opportunities for IT services companies with meaningful India presence.
Consolidation in IT sector If 2012 was the year of acquisitions for large-caps Infosys and Wipro, in 2013 mid-tier IT providers are expected to be active on the consolidation front. Companies like Hexaware, L&T Infotech, iGate, Persistent Systems etc are said to be scouting for possible acquisitions. In 2012, Infosys bought Zurich-based consultancy firm Lodestone, while cross-town rival Wipro bought Australia-based analytics provider Promax; Mumbai-based Tech Mahindra made two acquisitions.
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