Indian IT to dominate global market post eco recovery: Deloitte
Deloitte said Indian IT services industry is undergoing a structural transformation & is poised to dominate global IT space after economic recovery sets in. IT trends in '09
By PTI |
NEW DELHI: Global consultancy firm Deloitte on Tuesday said Indian IT services industry is undergoing a structural transformation and is poised to dominate the global IT space after recovery sets in.
"The profile of the Indian IT industry is undergoing a paradigm shift and after economic recovery sets in it will emerge as a dominating player in global IT space," Deloitte India Principal Economist Shanto Ghosh told media.
"Economic recovery globally is likely to come in by the second half of the next calendar year, "Ghosh added.
According to the Deloitte whitepaper, the Indian IT-BPO industry is now at a critical point in its evolution and moving forward it faces a transforming macroeconomic environment, rapidly changing customers, evolving services and rising stakeholder aspirations.
"These forces are expected to redefine the nature of demand and supply for the industry, and also redefine the strategic imperatives for businesses in 2009," the report stated.
The report added that the global slowdown has affected business climate within the country and the growth rate of the IT and IT Enabled Services sector is experiencing tremors of the downturn.
Indian IT sector derives about 61 per cent of its revenues from the US-based clients, hence impact of slowdown in the US is likely to have a deep impact on prospects of the sector.
"This year will be challenging for the Indian IT industry as the revenues and clientele is likely to be considerably impacted by the slowdown in global economy," Ghosh said.
Moreover, about 41 per cent of the IT industry revenues in India are estimated to be from financial services. The Deloitte report said that since this sector has been affected most severely in current climate, the impact on Indian IT companies catering to this sector has been and will continue to be more acute.
The white paper pointed out that margins are prone to be challenged on account of slowing growth in the US and European Banking and Financial Services Industry (BFSI) sectors.
However, looking ahead the report expects the country would recognise need for transformation and change.
"Indian IT services industry landscape has graduated from being a low value long term services provider offering cost and labour arbitrage to provider of high value one time /long time services such as discrete and end-to-end outsources facilitated by its scalability," it stated.
While the 2009 outlook for global technology related spending is affected by the recessionary environment, a rebound is expected from 2010 onwards.
The Deloitte report added that the opportunity for the country is tremendous since currently it accounts for just over 4 per cent of worldwide technology related spend.
"The profile of the Indian IT industry is undergoing a paradigm shift and after economic recovery sets in it will emerge as a dominating player in global IT space," Deloitte India Principal Economist Shanto Ghosh told media.
"Economic recovery globally is likely to come in by the second half of the next calendar year, "Ghosh added.
According to the Deloitte whitepaper, the Indian IT-BPO industry is now at a critical point in its evolution and moving forward it faces a transforming macroeconomic environment, rapidly changing customers, evolving services and rising stakeholder aspirations.
"These forces are expected to redefine the nature of demand and supply for the industry, and also redefine the strategic imperatives for businesses in 2009," the report stated.
The report added that the global slowdown has affected business climate within the country and the growth rate of the IT and IT Enabled Services sector is experiencing tremors of the downturn.
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Indian IT sector derives about 61 per cent of its revenues from the US-based clients, hence impact of slowdown in the US is likely to have a deep impact on prospects of the sector.
"This year will be challenging for the Indian IT industry as the revenues and clientele is likely to be considerably impacted by the slowdown in global economy," Ghosh said.
Moreover, about 41 per cent of the IT industry revenues in India are estimated to be from financial services. The Deloitte report said that since this sector has been affected most severely in current climate, the impact on Indian IT companies catering to this sector has been and will continue to be more acute.
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The white paper pointed out that margins are prone to be challenged on account of slowing growth in the US and European Banking and Financial Services Industry (BFSI) sectors.
However, looking ahead the report expects the country would recognise need for transformation and change.
ADVERTISEMENT
"Indian IT services industry landscape has graduated from being a low value long term services provider offering cost and labour arbitrage to provider of high value one time /long time services such as discrete and end-to-end outsources facilitated by its scalability," it stated.
While the 2009 outlook for global technology related spending is affected by the recessionary environment, a rebound is expected from 2010 onwards.
The Deloitte report added that the opportunity for the country is tremendous since currently it accounts for just over 4 per cent of worldwide technology related spend.
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