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Follow UsThe Indian software and services exports is geared to scale new
heights with revenues exceeding $31 bn in the current fiscal, a 32.6% growth
over the last fiscal. As per the Nasscom Strategic Review 2007, the industry has
grown its revenues ten fold during the last decade from $4.8 bn in FY 1997-98 to
$47.8 bn in FY 2006-07. This pegs the estimated industry contribution to
the GDP to 5.4%, up from 1.2% during the same duration.
For the first time ever, the domestic industry has broken out of
the hardware linked growth pattern, and Indian firms are playing an increasing
role within this segment. The total size is estimated to cross $15.9 bn in
2006-07, a 21% growth. "Indian IT industry's consistent growth in both
exports and domestic segments and its ongoing expansion into new, potentially
high growth opportunities reaffirms the continued confidence and global
competitiveness of the Indian IT sector," says Kiran Karnik, president,
Nasscom.
The Indian IT-ITeS sector meanwhile is estimated to gross more
than $47.8 bn in annual revenue in FY 2007. "The industry is perfectly
poised to tap new opportunities in the offshoring and domestic segments for
greater wealth and IP creation for the country," says B Ramalinga Raju,
chairman, Nasscom.
|
IT Industry |
||||
|
($ bn) |
FY 2004 |
FY 2005 |
FY 2006 |
FY 2007* |
|
IT Services |
10.4 |
13.5 |
17.8 |
23.7 |
|
- Exports |
7.3 |
10.0 |
13.3 |
18.1 |
|
- Domestic |
3.1 |
3.5 |
4.5 |
5.6 |
|
ITeS-BPO |
3.4 |
5.2 |
7.2 |
9.5 |
|
- Exports |
3.1 |
4.6 |
6.3 |
8.3 |
|
- Domestic |
0.3 |
0.6 |
0.9 |
1.2 |
|
Engineering Services and R&D, |
2.9 |
3.9 |
5.3 |
6.5 |
|
- Exports |
2.5 |
3.1 |
4.0 |
4.9 |
|
- Domestic |
0.4 |
0.8 |
1.3 |
1.6 |
|
Total SW and Services |
16.7 |
22.6 |
30.3 |
39.7 |
|
of which, exports are: |
12.9 |
17.7 |
23.6 |
31.3 |
|
Hardware |
5.0 |
5.9 |
7.0 |
8.2 |
|
Total IT Industry (including HW) |
21.6 |
28.4 |
37.4 |
47.8 |
|
* Expected |
||||
| The Indian software and services exports has scaled new heights with revenues exceeding $31 bn in the current fiscal |
||||
The Strategic Review states that offshore product development is
growing between 22-23% and is likely to report $4.9 bn in exports in the current
fiscal. Predictably so as investments by multinational companies have reached a
new high in 2006-07, with companies pledging as much as $10 bn to be invested
over the next few years.
The rapid pace of development of the Indian software and
services industry has also spelled good news for service providers as well as
those who are now bidding for larger and more complex deals. High offshore
component of delivery and better execution on multi-location delivery are some
of the key differentiators, which have pulled the share of contracts value from
1% in 2002 to 7% in 2006
The Indian software and services industry will provide
employment to 1.6 mn in FY 07, but this growth cannot be sustained in the
absence of an adequate supply of quality manpower. Nasscom in collaboration with
the government has initiated several initiatives to enhance the availability and
access to suitable talent for IT-ITeS in India.
Stuti Das
stutid@cybermedia.co.in