India’s future in information technology outsourcing will be determined by how it addresses challenges that arise from increasing competition and infrastructure demands, revealed the Economic Survey 2010-11.
The Economic Survey was presented in the Parliament on Friday by Union Finance Minister Pranab Mukherjee.
The annual report said that though India remains a key player in global information technology outsourcing, the country is likely to experience a setback unless the competitive aspects are adequately addressed to.
The report also put an accent on the competition from other major business process outsourcing countries. In addition, the report also cited protectionist attitude of countries like Britain where they have policies to employ locals.
ancial year 2010-11, the country will witness broad-based growth across mature and emerging verticals, forecasts Nasscom, which represents the tone of public policy for the country’s software industry.
The overall IT revenue of Indian software industry for 2010-11 will be expected to go up to $76.1 billion from $63.7 billion of the previous year. This growth is in tune with that of the previous years since 2004-5 and implies a compound annual growth rate of 22.5 per cent.
2010-11 also saw the industry grow by 19.5 per cent in contrast to 6.2 per cent growth of the preceding year.