The value of outsourcing and consultancy services provided by India-based companies to foreign countries is set to rise by 12-14% in the financial year starting 1 April, according to the National Association of Software and Services Companies (Nasscom).
The Indian trade body predicts that India’s national exports of software and services will be worth somewhere between $84bn and $87bn over the period.
Exports are expected to top $75.8bn in the current fiscal year, an annual rate of growth of 10.2%, Nasscom forecasts.
The upbeat predictions come as major Indian outsourcing companies such as Tata Consultancy Services and Infosys reported stronger financials at the end of last year. The upturn marks a reversal from a period of relative stagnation over preceding years as US and European companies slashed consultancy budgets.
Customers also prefer that their suppliers are located close to their operations in key markets in the US and Europe, which will require larger expenditure on setting up facilities and local hires in these countries, said Ashok Vemuri, head of Americas at Infosys, during a recent interview with IDG.
