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Factors like weakening rupee, high production input prices, hike in borrowing costs, and geo-political situation continued to plague the industry in 2012.
These along with domestic policy paralysis prompted software services industry body Nasscom to lower growth forecast for 2012-13 for IT-BPO exports to 11-14 percent from previous fiscal’s target of 16-18 per cent growth.
IT companies seem to be ready for this new “normal” and are now embracing technologies like social media, cloud, analytics and mobility (SCAM) to optimise and ensure efficiency in business environment, all within flat or lower than usual IT budgets.
While the global macroeconomic scenario remains uncertain in the coming years, the industry will continue to exhibit resilience and adaptability in continually reinventing itself to retain its appeal to clients, Nasscom said.
“The year 2012 has been a landmark year for the Indian IT industry… At such a large base, we expect the industry to clock double digit growth in FY 2013 which exhibits that despite global uncertainties, IT-BPM industry has moved from efficiency to effectiveness,” it added in an emailed response.
2012 was a mixed one for the top five IT services firms. While Tata Consultancy Services (TCS), HCL Technologies and Cognizant saw good growth, Infosys and Wipro lagged peers. TCS and HCL Technologies have registered quarterly revenue growth 13 percent and 17 percent in dollar terms, while both Infosys and Wipro registered under 5 percent growth.
Also, Infosys slashed its revenue growth outlook to five percent for FY2012-13 and suspended its practice of giving quarterly guidance, while Wipro hived off its non-IT businesses like Consumer Care & Lighting into a new company to focus exclusively on IT.
Cognizant continued to give strong competition to its counterparts, pushing Infosys to the third spot in the top Indian IT services players tally with growth of over 20 percent. Though it is not listed in India , Cognizant is often referred to as an Indian entity with three-fourth of its over 1.50 lakh employees being based here.
Overall, the companies remain confident of growth and opportunities in 2013. HCL Technologies Senior Corporate Vice President Shami Khorana said though the macro environment will continue to be challenging in 2013 with flat IT budgets, the outlook remains positive.
“We continue to maintain a positive outlook focussing energies on the US and Europe re-bid market,” he said. TCS CEO and MD N Chandrasekaran is also upbeat about the industry’s growth. “When history looks back at this era, it will be remembered for the huge technology and digital transformation we are now living through, not the economic turbulence.”
According to him, four “powerful” technologies
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