Indian IT to dominate Global Market post Eco Recovery: Deloitte

According to Deloitte, 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 said. "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.

 

Indian IT sector derives about 61 percent 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. Moreover, about 41 percent 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.  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 percent of worldwide technology related spend

 

Source: The Economic Times