DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/6c69p6/indian_it) has announced the addition of the "Indian IT Services Industry 2013" report to their offering.
Renewed prospects for the US economy and rupee depreciation augment growth
The Indian IT Services exports have been consistently outperforming the global technology growth and have recovered well after the global financial meltdown in 2008-09. FY 2013 flattened the growth curve for the Indian IT Services as the recovery in Europe and the US was slower than expected, although the rupee's depreciation was a saving grace. The authors expect that the IT Services exports will rebound to the early double digit growth figures over the next couple of years on the back of improving global growth scenario, as evidenced by positive data from the US.
Healthcare, retail, utilities and government sectors to drive growth
Globally, BFSI and manufacturing remain the two largest verticals accounting for nearly 40% of total IT spending. Newer verticals like government, healthcare, retail and utilities add next 30% to the total IT spend. BFSI is the most prominent vertical for Indian IT-BPM exports accounting for nearly 41% of the exports followed by Hi-Tech/Telecom (18%), manufacturing (16%), retail (10%) and Healthcare (5%). The authors believe that the vertical mix for Indian IT Services will remain almost intact in the near future with the emerging segments like healthcare, government, retail and utilities are likely to grow faster than the industry average.
Rising non-linearity
Indian IT Service providers are transcending to value-added offerings like consulting, system integration etc, which demand a differential pricing as the client's focus shifts from cost-saving to quality. This has led to emergence of non-linear pricing models, which links the clients' expenses to their business outcome or usage and revenues are linked with productivity, ensuring vendors share productivity gains with clients. Additionally, IT players are moving away from Full Time Equivalent (FTE) and per hour basis billing practices to transaction based, outcome based models in new deals. Fixed price contracts that allow IT players the space to innovate and cut down on cost by adopting non-linear measures like platforms, accelerators etc, account for close to half of the total contracts now.
Emerging Technologies - SMAC
Social media, mobility, analytics and cloud computing (SMAC) have seen a rise owing mainly to the functionality they provide. About 30% of the world's population is online which provides a large opportunity for businesses through this avenue wherein various devices have led to people accessing the internet through mobile devices giving rise to mobility. Analytics is useful in making better and more informed business decisions while a social media strategy is prevalent in most companies. Cloud computing is growing fast as a disruptive force in the technology space partly complementing partly cannibalizing the traditional software services.
Regulatory Overhang - US immigration bill
US house of senate has passed the landmark immigration bill. The provisions in the proposed immigration bill if passed would hamper the functioning of the IT industry and impact its margins as well as the ability of the Indian IT companies to serve their customers onsite. It will increase the cost of companies by considerably raising the visa fees and enforcing larger proportions of local hiring. Passage of the bill in the current form looks implausible and would not happen until 2014.
Companies Mentioned
HCL Technologies Limited
Hexaware Technologies Limited
Infosys Limited
KPIT Technologies Limited
NIIT Technologies Limited
Tata Consultancy Services Limited
Wipro Limited
Zensar Technologies Limited
For more information visit http://www.researchandmarkets.com/research/6c69p6/indian_it
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