Infosys Strategic Management

INTRODUCTION

In an increasingly globalised world, significant complexity and uncertainty is getting attached to the unprecedented economic crisis. The Indian economy has also been impacted by the recessionary trends, with a slowdown in GDP growth to seven per cent. The focus and exponential growth in the domestic market has partially offset this fall and insulated the country, resulting in net overall momentum. The IT-BPO industry in India has today become a growth engine for the economy, contributing substantially to increases in the GDP, urban employment and exports, to achieve the vision of a “young and resilient” India. During the year, the sector maintained its double digit growth rate and was a net hirer. This growth has been fueled by increasing diversification in the geographic base and industry verticals, and adaptation in the service offerings portfolio. While the effects of the economic crisis are expected to linger in the near term future, the Indian IT-BPO industry has displayed resilience and tenacity in countering the unpredictable conditions and reiterating the viability of India’s fundamental value proposition. Consequently, India has retained its leadership position in the global sourcing market.

The year 2011-12 characterizes a landmark year as aggregate revenue for the Indian IT-BPO sector is estimated to cross USD 101 billion. Continuing as the bastion for the sector, exports accounted for ~USD 69 billion, growing by 16.3 percent over the last fiscal year.

Despite challenges in the global market conditions, India sustained its growth trajectory. Some of the other pivotal factors that have been contributing to this growth include new business models, organization efficiencies, services around disruptive technologies such as cloud, mobility, analytics, social media, and flexible product portfolios and verticalized solutions. For FY2013, the export revenues are expected to grow by 11-14 per cent while the domestic...