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Starting the year 2007 on a positive note, industry went on to further raise the bar by posting above- forecast results, continuing to reach greater heights in terms of revenue growth, employment numbers as well as maturity of service offerings.

 

During the year several macro economic factors started in fluencing the Indian economy and more so the IT industry. The US Dollar had an unprecedented and rapid depreciation vis- à- vis the Indian Rupee, concerns on the slowdown in the US economy fuelled by the sub- prime crisis, in fl ationary trends due to increased crude prices etc . Ongoing concerns around talent and infrastructure added to the skepticism about the sustainability of India’s value proposition in the IT- BPO sector.

 

The industry responded with maturity on all counts, pitching in to take on these challenges. India remains the core component of global sourcing strategies and India base service delivery continues to expand in scope and scale. Direct employment in the sector is expected to cross 2 million this year. IT adoption in the domestic market is growing rapidly, supporting the rounded evolution of the sector and its growing role in the economy.

 

The Strategic Review 2008 reviews various aspects relating to the Indian IT-BPO sector’s performance in 2007. The report estimates the growth expected in the current fiscal FY2008, detailing the service line trends observed across the various industry segments over the past year and assessing India’s competitiveness as a sourcing destination. It analyses the sustainability of each individual factor contributing to India’s leadership position and provides a view of the outlook projected for the global and Indian IT-BPO industries – outlining the opportunities, challenges and agenda for key stakeholders to further extend India’s leadership in this space.