IT industry to grow at around 13-14% in current fiscal: Nasscom

Posted By: Religare
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The industry body Nasscom on Tuesday said that IT industry will grow at around 13-14 per cent in the current fiscal and touch the USD 225 billion mark by 2020, helped by three main growth drivers including new vertical, new geographies and newer customers.

Nasscom President Som Mittal told reporters that the industry has been growing at a CAGR of 12-13 per cent till two years back and reaching the USD 225 billion target by 2020 will not be impossible.

As per Nasscom, the first driver—newer geographies—will help industry achieve this growth target. While currently almost 90 per cent of revenues come from US, UK and European nations, going ahead Nasscom expects markets like Asia-Pacific, China, Africa, Latin America and India will contribute more to the revenues.

"Only 3 per cent of the business we do in China and Japan, which shows there is plenty of opportunities in those markets. Our estimate is around 20 per cent of the business would come from new geographies by 2020," said Mittal.

The second driver will be new verticals where growth would be fueled by sectors such as utilities, transport, health care and media & entertainment. Currently, BFSI, Hi-tech & Telecom and Manufacturing contribute around 80 per cent of the business.

The third driver will be newer customers, especially SMB companies, said Mittal.

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Story first published: Tuesday, June 18, 2013, 22:30 [IST]
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