It is boom time for IT sector

IT software and services sector firms continue to be on a roll and very much on track to meet the $60 billion exports target by 2010.

Even $75 billion may not be too much to ask for, if the current growth rate continues, according to Nasscom President Kiran Karnik.

The end-December 2006 quarterly results have borne out this optimism, posting a good show despite an appreciating rupee, rising attrition and wages and fewer billing days.

It's against this backdrop that delegations from Canada, Taiwan, Egypt, Sri Lanka, Wales, Australia and Malaysia will be converging on the three-day 15th annual 'Nasscom India Leadership Forum' here on February 7 to focus on globalisation, innovation and leadership.

Over 120 speakers and 1,300 delegates are expected to attend the event this year. With a special session by Prime Minister Manmohan Singh, the forum will reflect on the globalisation of the domestic IT-BPO industry and focus on the areas where the world can work in partnership with India.

What's working for all IT services firms (small or big) is their global delivery models (GDMs) and global delivery centres (GDCs), which help them derisk their businesses. This by expanding geographically, acquiring companies in their domain areas (be it major companies like Wipro or mid-caps like 3i Infotech, Subex Azure, i-flex, Four Soft or Tech Mahindra), posting larger client wins (for instance, HCL Technologies, Tech Mahindra, TCS and Infosys have all struck multi-million dollar deals this quarter) and negotiating new contracts at billing rates that have increased 3-5 per cent and more.

The US Democrat pressure too on outsourcing is not expected to dent the topline or bottom line since business concerns and cost-arbitrage are expected to be a priority.

Given these conducive conditions, the IT software exports business is well on course to achieve the ambitious target of $60 billion by 2010 is an oft-repeated statement by Nasscom. The Indian domestic IT market too is expected to exceed $15.9 billion in fiscal 2006-07 recording a 21 per cent growth.

Software and services (IT-BPO) exports are expected to exceed $31 billion in 2006-07 "" a 32.6 per cent growth over last year's figure of $23.6 billion. However, attrition continues to remain a sore point. The dearth of IT engineers is forcing the Indian and technology companies to recruit around 40,000-50,000 non-IT professionals and science graduates in this financial year "" the highest by any industry in the country. But IT majors like Infosys

Technologies, Tata Consultancy Services (TCS), Tech Mahindra, GTL and Wipro Technologies are innovating by recruiting non-IT personnel for IT jobs.

While India is expected to continue to lead the supplier market and Europe will continue to show a strong growth, Brazil and Russia are emerging as strong contenders. The Nasscom meet is expected to shed further light on the future strategies in this direction.