Domestic IT-BPO revenue (excluding hardware) is expected to grow at almost 17 per cent to reach Rs 918 billion in FY2012. Strong economic growth, rapid advancement in technology infrastructure, increasingly competitive Indian organisations, enhanced focus by the government and emergence of business models that help provide IT to new customer segments are key drivers for increased technology adoption in India

Key Highlights during 2012

• Uptake of IT-BPO in India is steadily increasing, with demand coming from both consumers and enterprises, government’s technology infrastructure initiatives, unified communications and availability of world class telecom infrastructure and services
• IT services is the fastest growing segment in the Indian domestic market, growing by 18 per cent to reach Rs 589 billion, driven by increasing adoption from all customer segments – government, enterprise, consumers and SMBs
• Domestic BPO segment is expected to grow by 17 per cent in FY2012, to reach Rs 149 billion, driven by demand from voice-based (incl. local language) services and increasing adoption by both traditional and emerging verticals, including the government
• The domestic software products segment is set to grow to Rs 180 billion in FY2012, a growth of ~13 per cent over FY2011. This segment is being driven by the need to replace legacy systems and technology advancements around cloud, mobility, etc.
• Domestic Hardware market to cross Rs 615 billion in FY2012, driven by rapid uptake in notebooks/netbooks/tablet computers, mobility devices, improved connectivity tools, etc
• Domestic customer base comprising the government, large, micro, small & medium enterprises and household consumers, represent unique set of requirements
• Suppliers are realigning themselves to suit India specific needs and innovating new ways to target customers
• Direct employment within the domestic IT-BPO sector is expected to grow by 7 per cent over FY2011 to cross 600,000 employees with the industry creating immense job opportunities in Tier II and Tier III cities