India’s IT Industry 3Q: Small Growth, Positive Indicator
Keywords: Business Process Outsourcing, BPO, Information Technology (IT), IT Services, India, Quarterly Supplier Revenues, Software Development.
The last two years have been challenging and uncertain for India's information technology (IT) services market. Some of the top IT companies are not revealing the actual figures for guidance and expected projections for the year, but did mention that they are expecting flat to marginal growth. Macroeconomic conditions play a major role in either shaking up or stabilizing the IT industry. In addition to the macroeconomic conditions, which directly impact the buying behavior of customers, tough competition on the domestic turf is constraining growth margins.
Following the economic meltdown of 2008, India's IT industry is struggling to recreate the magic of >25 percent growth that occurred between 2003 and 2008. The need of the hour is strategic leadership and product innovation to regain industry momentum. This Insight attempts to analyze the third quarter of the FY 2012-13 of the Indian IT sector and compare it to the same period last year.
The financial results of the top 18 IT companies based in India and listed in the National Stock Exchange (NSE), Bombay Stock Exchange (BSE) or both form the core of this Insight. ARC believes that this Insight provides a representative sample of India's IT market. The suppliers included in this report recorded combined quarterly revenue of $9.5 billion, representing an 8.9 percent year-over-year growth rate. Five out of 18 companies reported year-over-year decreases in software or product revenues, while the rest showed growth in the third quarter (October-December).
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