BACK ON THE GROWTH TRACK

IT Companies say growth is mainly through revival of pending projects

Sunshine seems to be returning to the Indian information technology industry. But what is fueling this growth..??

Interestingly, the evidence is mostly anecdotal so far. Companies say growth is mainly coming from the pending projects being cleared by clients. 30% of the IT budgets that are used to make a change in the business were shelved during the slowdown. Those are coming back now. Analysts believe that in the near term clients, IT budgets are going to be flat & most of the revenues would come from the pending projects.

There are a number of reasons why the software companies in India have been so successful. Besides the Indian software companies, a number of multinational giants have also plunged into the India IT market.

India is the hub of cheap and skilled software professionals, which are available in abundance. It helps the software companies to develop cost-effective business solutions for their clients. As a result, Indian software companies can place their products and services in the global market in the most competitive rate. This is the reason why India has been a favorite destination for outsourcing as well. Many multinational IT giants also have their offshore development centers in India.

“Historically, for a 10% growth in revenues we would increase the workforce by 10%, but now we can do better revenues with the same people,” says Girish Paranjpe, joint CEO of Wipro. Thus we could conclude that, IT industry is on a Rocket Ride but not the workforce.