Indian IT industry back on upwardly mobile track

The earnings of the Indian information technology (IT) industry have far exceeded expectations during the fourth quarter of 2009 fiscal ending on March 31, 2010. Such augmented performance and profitability after a gloom of two years of global economic recession have placed the Indian IT industry back on the path of rapid growth.

Quoting L. Suresh, the IT department president Andhra Pradesh, a leading Indian state in information technology business, a news website reports that currently the industry is growing at a rate of 13 to 15 per cent in the country. The report further states that with the economic recovering in the US and European markets that make up approximately 80 per cent of India’s software exports, business is once again back to usual. Such an upbeat outlook has not only prompted the Indian IT sector to go on an expansion drive, but also resort to large-scale recruitments.

Citing the forecasts made by National Association of Software and Service Companies (NASSCOM), the foremost trade organization and chamber of commerce of the Indian IT and BPO industries, Suresh pointed out that the industry is anticipated to grow at a rate of 13 to 15 per cent during the 2010 fiscal especially owing to the fact that the global economy is witnessing an improvement – for instance, the US is out of the recession. Besides the increasing number of overseas deals, there is a substantial domestic market for the IT industry in India, he added.

Interestingly enough, even the software experts located in Hyderabad, capital of Andhra Pradesh and a major IT hub worldwide, are presently in a state of vivacity since most firms have started offering incentive following the hiatus during the past two years owing to global economic slump. According to Rehana, an IT professional based in Hyderabad, her firm is once again conducting interviews every day and recruiting an increasing number of professionals. She further informed she was of the view her company has been able to pick up around 50 to 60 per cent of the losses endured during the recent recession and the current situation was significantly healthier than what it was in the 2009 fiscal.

While the Indian IT industry is optimistic that increased demand from overseas will help it to maintain an annual growth of 15 per cent, despite the prevailing economic turmoil in Europe, it will be able to win more contracts from the Euro zone and deliver high quality jobs, albeit at lower rates.