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News >> Technology >>
Indian IT to thrive amidst meltdown
By siliconindia
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Monday, 05 January 2009, 20:48 IST
Bangalore: Despite uncertain outlook lingering over the IT industry, the Indian IT-BPO sector will emerge strong in 2009. Amidst the lowered growth forecast, the industry will see a steady pace of growth as the global firms will offshore more work as retrenchment measure.
"Offshoring to reduce costs will accelerate. I even see more M&A activity over the next 12 months to acquire domain skills as more companies look at Indian IT players to cut costs," said Som Mittal, President, Nasscom. Though in the short-term the industry may have to cope with the fluctuating currency and renegotiation of contracts, the long-run will definitely bear positive results. Infact, new contracts from smaller global firms will bring in more revenue, as the total IT spend of these firms exceed the IT spend of Fortune 500 companies.
Even new verticals like government business and alternative energy are likely to grow. Chris Hyman, CEO, Serco Group, the six billion dollars UK services player which entered India by acquiring local BPO firm InfoVision, expects government outsourcing to be the next big thing for the sector. Foreign governments looking at offshoring work to India might take time, but a large number of companies will increase focus on large government contracts within the country. Thus, boost opportunities for the country, which is a major target of different companies to offshore some of their top-end skills.