Analysts are pointing to a key trend in the roadway to the US budget in 2014. Experts note that it is almost certain that the country would allocate increased resources on the growth of technological services, specifically in the IT field. Observers also point out that an escalation in technological funding would also mean good news for Indian IT companies because outsourcing would increase big time. Several leading companies expressed their policies to focus greatly on finding effective technological solutions in a rapidly evolving digital world. Credit card service American Express stated that many of their critical decisions in 2014 would relate to increased incorporations of latest technological solutions.
In a related development, the Indian software export industry is also looking forward to do good business in the coming year. The $75 billion industry serves a global clientele with high effectiveness owing to the best talent pool that the Indian experts contribute. About 50% of the software exporting business from India is with US clients. So, an escalation in technological budget allocation would definitely lead to great business for the Indian companies.
Target, the departmental store chain also expressed that they have several plans to incorporate technical elements into the demand and supply network. A company spokesman confirmed that the service is expecting similar allocations to technological upgrades compared to the investment in remodeling or opening a new store. In 2012, the discount retailer service from Minneapolis spent $1.3 billion into remodeling old facilities and opening new ones. Its expenditure on technology upgrades in 2012 was valued at $982 million. However, the store is well in the awareness that users are increasingly resorting to online research before deciding the right product. Investing in technological aspects like the improvement of the e-commerce protocol can be crucial in attracting and retaining new customers.
The budget in 2014 may well be a refreshing change from the lull in IT export for the past few years. The macro-economic challenges like the depression and other aspects forced companies to adopt conservative spending practices mostly. However, as the economic system is on a path to recovery, the outsourcing of services would increase invariably also. Companies cannot miss to afford the highest talent resources of India, available only at a fraction of expenditure of hiring professionals in the US. Peter Bendor Samuel, the CEO of the research & consulting firm Everest Group, tried to put the trend in numbers. He projected that the outsourcing expenditure is all ready to grow by 10-12% in 2014. This is a significant rise, almost double the growth rate of 6-8% in 2013.
Prabhudas Liladher, an equity research firm based in Mumbai also noted another promising related trend. The analysts there state that the Indian IT companies are stepping up the hiring process big time as they expect more business to come in. The company also confirmed that eventually 2014 is going to be the silver-lining of positive participation from US IT firms following the clouds of 2012-13. The analytics firm also expects the Nasscom to improve their forecast for the next financial year to above 15 %. The current projection rate up to the financial year ending on March 2014 is at 12-14%.