The National Association of Software and Service Companies (Nasscom) has suggested the Indian IT firms to diversify business in countries including China, Japan, South Korea and Africa instead of keeping focus on the US market. Admitting that domestic market has remained sluggish for industry with stagnant growth in the last two years, Nasscom President R Chandrashekar highlighted that it has become imperative for domestic IT firms to prepare country-specific strategies to tap the Asian and African markets.
Nasscom projects Indian IT-BPO industry growth at 13-15 percent for 2014-15 and exports at same rate of 13-15 percent from $86 billion for 2013-14 to $97-99 billion by the next fiscal year. The size of the IT-BPO industry would grow from $108 billion in 2012-13 to $118 billion in 2013-14 with a stagnant $32-billion domestic market contribution.
R Chandrashekar further added that there is a downturn in the domestic market, generating a growth of only 10% in rupee terms. Further, political uncertainty, slowdown in policy and decision-making and macro- economic issues are the major challenges that the IT-BPO industry is facing. Meanwhile, in order to boost domestic IT market, Nasscom is focusing on some areas that needed immediate attention. On global front, Nasscom is stepping up efforts to improve business ties with China amid expectations of increasing IT spending by the Chinese government in order to make a major dent in the Chinese information technology (IT) market.