India's outsourcing sales up 11% for the year

MUMBAI, INDIA: Sales by India's flagship outsourcing sector are likely to grow by 11% this fiscal year to at least US$75bn in the face of a challenging business environment, an industry lobby group said on Monday (12 November).

The forecast is at the lower end of an 11% to 14% projection given by the National Association of Software and Services Companies, or Nasscom, earlier this year.

Nasscom president Som Mittal told reporters in Mumbai that the industry has been able to grow despite the "challenging environment".

Companies such as TCS, Infosys and Wipro lead India's information technology outsourcing sector that performs a wide range of tasks for Western firms -- from answering calls from bank customers and processing insurance claims to software development.

Most Indian IT outsourcing firms say the outlook remains challenging as clients in key US and European markets contend with sluggish growth and slow decision-making, along with political opposition to outsourcing in the face of high domestic unemployment in those economies.

India, with its large English-speaking workforce, accounts for at least 50% of the global outsourcing market and the sector is a vital exporter for the country.

Nasscom chairman N. Chandrasekaran said business prospects were improving in the United States despite anti-outsourcing rhetoric during the country's recent election campaign.

"The US economy is recovering and will (have to) depend on technology," he said. "So there is going to be (outsourcing business) growth," Chandrasekaran added.

Source: AFP via I-Net Bridge