After an initial setback due to the global recession, the Indian information technology (IT) and information technology-enabled services-business process outsourcing (ITES-BPO) industry is back on the high-growth path, according to the findings of a survey of SMEs in the sector, conducted by IndiaMART Knowledge Services (IKS).
The outlook for the future is also positive, as almost half of the respondents (48 per cent) expect more than 20 per cent growth in 2011. While the same proportion is hopeful of achieving growth of up to 20 per cent, only four per cent expect a decline in sales. Fifty-six per cent of the respondents reported that the market had picked up in 2010 when compared to 2009. While 24 per cent found no change, 20 per cent reported a decline. Some 24 per cent said that customer sentiment had improved beyond expectations in 2010, while 44 per cent reported average improvement and 32 per cent reported that consumer sentiment remained negative.
A majority of the respondents (52 per cent) reported that sales increased by 20 per cent during 2010, while 36 per cent reported an increase in sales of more than 20 per cent; only 12 per cent witnessed negative growth in sales.
There was a similar trend in exports. A majority of those surveyed (48 per cent) witnessed an increase in export demand by 20 per cent in 2010 as against 2009, and 36 per cent saw an increase of more than 20 per cent. The remainder (16 per cent) experienced a decline in export demand.