The economy is recovering,BFSI is showing strongest bounce back,mega deals are struck with dollar strengthening

  • This sector is estimated to aggregate revenues around USD 73.1bn in FY 2010
  • The export revenues are estimated at $50bn,while domestic revenues at $23bn by FY2010
  • Indian IT sector estimated to provide direct employment to 2.3 mn and indirect employment at 8.2 mn by 2010
  • Software & services revenues accounts for 87% of total software revenues
  • IT sector’s revenues as proportion of GDP is estimated to touch 6.1% by end of FY2010
  • But there is hardly any improvement in pricing as clients are still hesitant about the macro scenario and hence keeping their IT budgets flat and insisting on better value from IT vendors
  • The latest report of NASSCOM’s Strategic Review 2010,showed that industry’s utilization rate increased by 34 basis point YoY to 74.2% in Dec,2009 thereby indicating the effective use of the the existing bench strength by the companies
  • During this fiscal, the industry was also successful in bringing down the SG&A expenses,increasing offshoring of work from on-site and also arresting the attrition level thus helping in saving on hiring and training cost
  • Indian IT sector are now recruiting the local talents in their overseas offices to overcome the rising concern for anti-sourcing sentiment which have helped to improve their margin even
  • IT products have always been export-driven but now more focus will be on the domestic market as the various opportunities are their to explore here even
  • The UID project based on e-governance is one of the example which will make IT companies ambitious and more focused on domestic revenues to grab for
  • The front runner companies like TCS,Wipro,Infosys are more appropriate to invest for as of now when IT companies are on improving trend
  • Bengal promises to be next IT hub
  • The only problem I see in this is the current strong appreciation of INR which will take a toll on the margins of these companies

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  2. Indian Telecom Sector – Results and Overview
  3. India Expansion of Ports Critical for Continued Economic Growth