Despite 2011 ending in a difficult economic environment, some geographic regions and services are expected to circumvent the situation in 2012. Global GDP, after growing by 2.7 per cent in 2011, is expected to grow 2.5 per cent in 2012, with developing economies growing thrice as fast as the developed economies. Better economic conditions in the second half of the year signifying return of consumer confidence and renewal of business growth, is expected to drive IT spending going forward.

Key Highlights during FY2012

• Global technology related spend expected to grow by 5 per cent in 2012
• Global sourcing to continue growth trend as organisations aim to cut costs, access local market and innovation and sourcing requirements
• Indian IT-BPO services exports expected to grow by 11-14 per cent while domestic services to grow by 13-16 per cent (in Rs terms)
• India accounts for less than 5 per cent of global technology spending – tremendous untapped potential for growth of Indian IT-BPO sector, in both core as well as emerging opportunities
• To achieve this growth, the sector has to continue to re-invent itself – through new business models, global delivery, partnerships and transformative focus
• Prevailing global megatrends presents new opportunities and risks for the industry, which will shape the technology industry landscape
• IT-BPO sector will need to build on its strengths and address challenges around competition, talent, security and business environment
• In the future, the industry to drive transformation, innovation and inclusivity in business and India

The key action themes for the IT-BPO industry to remain competitive and profitable in the future are:

• To increase operational efficiencies, reinvent and embrace new business models which will offer customers a transformed business proposition. For example, based on the customer requirement shift to transaction-based pricing which facilitates revenue-generating projects
• Drive concerted initiatives to strengthen the innovation capacity and research capabilities through specific domain focus and by encouraging R&D collaborations and public-private partnerships. Pursue continued efforts to further build a high-calibre R&D pool, not only from an educational perspective, but also by instilling the relevant research aptitudes and capabilities
• Continue to strengthen the long-term entrepreneurial environment
• Enhance the skilled talent pool in the country and focus on specialisation
• Continue the use of ICT for inclusive growth. Ensure that the basic necessities like education for masses, quality healthcare and employment and skill generation is benefited by ICT