New Delhi, May 20 (UNI) The spring 2008 KPMG ''Business Outlook Survey'' today projected a robust growth in the Indian service economy in the coming 12 months with over 60 per cent of service providers expecting an increase in levels of business activities.
The survey highlights the growth of activity will be supported by an anticipated rise in volumes of incoming new business. As many as 56 per cent of all companies forecast an increase in new work, while none expected a fall.
Revenues are also set to rise markedly, underpinned by increased marketing activity, the introduction of new products and entry into new markets. Around 58 per cent of companies expect growth of revenues during the coming year, despite widespread concerns over intensifying competitive pressures in the Indian service sector.
Service companies were optimistic about future profit levels higher profitability is anticipated at just under 58 per cent of firms. Increased revenues and profits are set to support rising levels of capital expenditure.
The survey entailed a sample of 1,400 service sector firms across the Brick region (Brazil, Russia, India and China).
The service sector in the Brick economies displayed continued confidence regarding business profit in the next 12 months.
Around 60 per cent of panellists in these economies anticipate a rise in activity at their company during the coming year, compared with just 2 per cent that expect a decline. Positive sentiment was most widespread amongst Indian firms.
In the context of the Indian economy, KPMG (India) CEO, Russel Parera felt that the current optimism reflects the unique positioning that India has with its large domestic market, offshoring service capabilities and economic value drivers.
Staffing levels are set to rise strongly, with around 41 per cent of panellists forecasting an increase in employment. Despite the resultant likely increase in capacity, companies also expect a greater amount of work to be outsourced.
Despite the resultant likely increase in capacity, the Indian companies also expect a greater amount of work to be outsourced, the survey said.
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