By NVONews Correspondent,
Mumbai: Despite the unsettled markets of America and Europe, India’s back-office services industry is not anxious and sees no concern from the possible recession there to affect its key markets.
The statement was officially made by Infosys and Wipro, India’s leading BPO companies, this Tuesdays.
While Infosys Ltd is India’s second-largest software services exporter Wipro is the country’s No.3. This fiscal year Infosys expects revenue growth of 15 to 20 per cent in its business process outsourcing (BPO) arm. Nithya Ramkumar, Wipro’s business technology officer also stated that the company does not expect to feel a major impact in the near term from the global crisis.
Swami Swaminathan, chief executive of Infosys BPO stated in a report to the media, “(Global slowdown) shouldn’t affect the BPO business. A downturn should in fact help the BPO business.
“When people don’t do well, they are obviously looking at opportunities to be more efficient. And that’s when they reach out to us.”
In a statement to the media, Som Mittal, president of NASSCOM said, “Our discussions with our members as well as our discussions with our clients indicate that they are not cutting back at this point.”
Matthew Vallance, chief executive of Firstsource Solutions Ltd stated, “We haven’t seen any slowdown in our business.”
Since United States and Europe account for more than 70 per cent of the industry’s revenue, the unsettled market there has caused the stock prices of these companies to plummet recently.
Pramod Bhasin, vice-chairman of Genpact said, “Right now there is no impact, but we recognise that it is early days.”
Last week India’s outsourcing sector was downgraded by BNP Paribas from “neutral” to “deteriorating”.
Swaminathan added “Last two years; we have been growing at about 20 per cent. I think we would be growing anywhere between 15 to 20 per cent (this fiscal year).”
About 835,000 people are employed in India’s outsourcing sector. As per the reports of NASSCOM, this sector alone was responsible for more than a third of the global back-office market and generated export revenue of $14.1 billion in the last fiscal year.