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India: Domestic IT Mkt to Grow, Fueled by Govt Initiatives |
| Source: |
egovonline.net |
| Source Date: |
Tuesday, December 28, 2010 |
| Focus: |
Electronic and Mobile Government, Citizen Engagement, Internet Governance
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| Country: |
India |
| Created: |
Jan 04, 2011 |
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Increasing focus on fast growing domestic market for IT-BPO will be a major trend for the industry. According to a research report by the consulting firm Dun & Bradstreet, in a booming economy domestic market is likely to grow rapidly driven by major government initiatives such as increased spending on e-governance and increased thrust on technology adoption/up-gradation across various government departments to bridge the gap of digital divide.
The Government of India has enacted a national e-Governance Plan (NeGP) which creates a big opportunity for the IT vendors to create an effective partnership. It has separately allocated US$9 billion for investment in NeGP projects till FY14.
The $60 billion plus Indian information technology (IT) and business process outsourcing (BPO) industry is likely to witness a phase of consolidation in the new year. The report says Indian IT-BPO industry is expected to adopt the inorganic growth route in order to widen their service offerings and enter new geographical markets.
It is expected that several third party and captive BPO units are likely to increasingly acquire small size companies to ramp up their revenue, clients acquisition, expand business segments and enhance geographical reach. “Consolidation will also be driven by international M&A deals, propelled by robustness of the Indian players,” the report said.
Indian IT-BPO industry has been seeing a spurt in consolidation with done deals like Sutherland Global Services’ acquisition of Adventity Global services, Hinduja Global Solutions’ acquisition of a UK based customer relationship management company, Careline Services, etc. Now a consortium of private-equity firms Apax Partners and iGate are close to buying 63 per cent of Patni Computer in a deal valued at about $915 million.
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India: Domestic IT Mkt to Grow, Fueled by Govt Initiatives Increasing focus on fast growing domestic market for IT-BPO will be a major trend for the industry According to a research report by the consulting firm Dun Bradstreet in a booming economy domestic market is likely to grow rapidly driven by major government initiatives such as increased spending on e-governance and increased thrust on technology adoption/up-gradation across various government departments to bridge the gap of digital divide
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