Bangalore, December 09: The worst seems to be over for the Indian IT services industry as the captains of the sector were more upbeat about the future. Suresh Vaswani, Joint CEO, Wipro, said: “We do want to capitalize on the upturn that is taking place…Things are looking better and therefore the outlook is positive.”
The export-dominated Indian IT services industry has been severely impacted by the ongoing recession in the developed economies, especially in the U.S. and Europe, and now there are signs of certain uptick in demand for outsourcing and offshoring.
Som Mittal, President of industry body Nasscom, said, worst seems to be over for the India’s technology services industry and it is expected that IT would be driving the growth for many economies. He said the industry growth for Financial Year 2010 (FY10) is expected to be in single digits and not likely to revise estimates given the current optimism. “If you look at the first half, growth was not there. It is taking into account what growth rates will come in the third and fourth quarters,” Mittal added.
Nasscom’s forecast for FY10 fiscal is likely to grow much slower than the 16 percent growth in FY09. Vaswani said there are newer verticals and geographies emerging as growth opportunities. Wipro is seeing stronger demand for outsourcing in the Middle East and Latin America.
According to the Vaswani, the company has not been affected the Dubai crisis. “The contracts we have in Dubai are good contracts, they are sustainable contracts,” he said, adding most of its clients in the Middle East are from oil and gas and manufacturing sectors and it does not have large exposure to the financial sector.
—Agencies7