India's IT services exports to grow by 13-15 percent

India’s IT service exports growth will be around 13-15% according to National Association of Software and Services Companies in 2010-11.

The recent anti-outsourcing oratory by US President Barack Obama probably won’t affect the Indian IT industry much. According to National Association of Software and Services Companies (NASSCOM), Indian IT exports, on the contrary may grow by 13-15%. Although the growth is lower when compared to the boom years, even then it is double the growth when compared to 2008-09, when IT exports plummeted because of global financial crises.

Indian IT sector seems pretty confident that its bullish run will continue as flow of outsourced work from US markets will go on. According to industry sources, US companies are conscious of the fact that they can rake in more profits by out-sourcing work to low-cost destinations like India, despite losing out on tax benefits

Increase in growth significant for SMEs

In 2009-10, the overall performance of Indian IT services has been far better than the previous year. And with economy on the revival mode, the industry analysts are hopeful that Indian IT services exports will receive a further boost. Most importantly, business of small vendors in particular will receive a fresh impetus, if the IT sector shows positive signs of growth in 2010.

If the IT service exports grow then major beneficiaries will the small and medium sized players who had incurred losses during the meltdown. The growth will help them sustain their business. IT giants like TCS and Infosys has reported growth of 6-7 percent in the 3rd quarter of the current financial year, so obviously the SMEs in this domain can also expect a higher growth in the near future.