New Delhi: Braving the 'new normal' of currency fluctuations and global economic challenges, the $108 billion Indian IT-BPM sector is looking at upsides as improving U.S. and European markets and disruptive technologies propel business confidence and client spending.

Year 2014 promises to be bigger and better than the last two years, which were marked by bloodbath in global markets due to Eurozone crisis and falling consumer confidence in the U.S. Demand is set to pick up in sectors like BFSI, healthcare, retail and transportation globally in the year ahead.

However, the changing regulatory environment in certain geographies like the U.S., Canada and Australia could play spoilsport for information technology and business process management (IT-BPM) firms as they face mounting operational expenses, which can further pinch their margins.

Besides, the upcoming Lok Sabha elections in India next year could delay the government's IT spending, which is expected to touch about $ 6.4 billion in the ongoing year.

"2014-15 is going to be better that 2013-14, which was better than 2012-13. It will be good for us as well as the industry," India's largest software services exporter Tata Consultancy Services CEO and MD N Chandrasekaran told PTI in an interview.

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