India's IT-ITeS grew 31% in 2005-06
This growth is also reflected in the employment trends, both direct and indirect which is to the tune of 4.3 mn.india Updated: Jun 01, 2006 16:54 IST
India's IT and ITeS industry recorded a 33 per cent growth in exports, earning $23 billion in the financial year 2005-06 as against $17.7 billion in 2004-05.
According to the annual survey of the National Association of Software and Services Companies (Nasscom) released on Thursday, 2005-06 saw the Indian IT-ITeS industry (including the domestic market) grow by 31 per cent registering revenues of $29.6 billion, up from $22.5 billion in 2004-05.
According to the survey, exports of IT software and services grew by 33 percent, registering revenues of $13.3 billion. The ITeS-BPO segment clocked revenues of $6.2 billion, recording a growth of 37 percent.
Engineering services and product exports grew from $3.14 billion in 2004-05 to $4 billion in 2005-06. The domestic market clocked revenues of $6 billion in 2005-06, up from $4.8 billion in 2004-05.
This amounts to $23 billion in total exports.
A press release quoted Nasscom president Kiran Karnik as saying, "The excellent performance of the Indian software and services industry once again reinforces our confidence that the industry is on course to meet the projected target of $60 billion exports by 2010, as projected in the Nasscom McKinsey Report.
"This growth is also reflected in the employment trends, both direct and indirect which according to our estimates is to the tune of 4.3 million."
The Nasscom survey also projected that the overall software and services sector will grow by 25-28 per cent clocking revenues of $36-38 billion in the financial year 2006-07.
IT-ITeS exports are likely to grow by 27-30 per cent in 2006-07, posting revenues up to $29-31 billion, the survey stated.
"With less than 10 per cent of the market currently addressed, a large market opportunity exists for the sector which will ensure sustained demand led growth.
Factors like evolution of global delivery model, unbundling of large IT outsourcing deals with larger India based delivery shares, and the large contract values due for renewal over next two years are some of the positive indicators for the sector," Karnik said.
He said that last year India's strength emerged through large client wins, cross-border mergers and acquisitions, movement of the industry towards stable pricing model and a gradual positive shift in the outsourcing debate.
At the same time, he warned that there are challenges that call for focused efforts.
"These include concerns about the quality and skill sets of graduates, infrastructure, maintaining the attractiveness of India for IT investments and steps to boost the domestic market," he said.