N E W S / E V E N T S

M C A

MCA EducationThe information technology (IT) sector in India is to grow by 4%-7% this fiscal and is expected to attain a double-digit growth in the next fiscal starting from April 2010. The country is already witnessing changes in trends that had been anticipated. The economic activity in the country is apparently speeding up, the technology companies are hiring again and acquisitions and mergers are on the cards. On the many acquisitions that the business process outsourcing (BPO) firms are considering the BPO industry in India has been mainly eying countries like China and in Europe.There are some factors based on which Indian companies look for acquisition, like seeking “to leave their footprints” on the English-speaking regions of the world. India has now attained the window to acquire capabilities in the English-speaking countries, since as much as 80% of the firms at present comes from those regions. Though the first half of the fiscal has been rather flat, the vector has been right, and hence the anticipation of more growth this year as well as of a double-digit growth in the next fiscal. The IT industry, however, is unlikely attain the huge growth rate it had recorded till 2007. The growth rate of around 30% achieved for an entire decade is very hard to maintain. The IT sector, in the next 10-12 years, will get bigger at a compounded annual growth rate of 14% –that is, it is estimated to jump from the $50 billion in 2008 to around $225 billion. The IT industry can achieve this goal only if it enhances its capabilities to meet the rising demand, instead of functioning only in 6 major cities, the IT industry should move to 43 other cities that have been identified by NASSCOM. The Indian government will need to accelerate its reforms and push for more investment if it wants to maintain good growth rates in the face of the global slowdown.

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