PSUs register $383 bn turnover in FY12: Study

BANGALORE: The country's public sector undertakings (PSUs) have recorded $383 billion turnover in 2011-12 with a revenue growth of 11 per cent since 2009, as per study.

Study conducted by the globalisation advisory firm Zinnov said that the country's public sector provides employment to 1.4 million people and 40 per cent of PSUs function in the manufacturing sector.

The report further noted that the investment in technology is principle trend in shaping up the growth of the sector.

It said, the PSUs are eyeying at investments in technology in order to help address the issues they faced in early years of transition towards making a more transparent and accountable organisation, lower the cost of production and augment productivity and customer reach.

The report maintained that energy and BFSI are the major PSU verticals for IT investments.

Currently, the major issue faced by the PSU sector is related to talent, which has led to lack of performance incentives in terms of recognition and accelerated growth paths for workforce, increasing productivity challenges, the report said.

Various challenges, including lack of quantitative benchmarks against domestic private companies or global equivalents is impacting the performance of the sector, along with broad-based decision making structure is leading to lack of accountability, the report added.