Software, service exports up 33%
The country's IT and allied service exports are poised to touch $60 billion by the end of the 2009/10 fiscal year, reports BR Srikanth.india Updated: Jul 02, 2007 21:19 IST
Exports of the country's software and IT-enabled service industry rose 33 per cent to $31.4 billion in 2006/07 while revenues including domestic business rose 31 per cent to $40 billion. With a sustained global boom in service outsourcing, the country's IT and allied service exports are poised to touch $60 billion by the end of the 2009/10 fiscal year, the leading industry association said on Monday.
The industry now employs about 1.2 crore people.
Led by IT behemoths Tata Consultancy Services (TCS) Ltd, Infosys Technologies Ltd, Wipro and Satyam, the top 20 services firms accounted for 60-70 per cent of the industry's revenue growth as well as profitability.
The National Association of Software and Service Companies (Nasscom) said in fiscal 2007-08, the revenues of software and services is likely to zoom by 24 per cent to 27 per cent to reach the $50 billion mark. "The projections look robust. We are confident that we will get there," Mr Kiran Karnik, president, NASSCOM, said on Monday.
Releasing the outlook for 2007-08 in Banglore, he said, "The software and services industry continues to exceed forecasts year after year and we are confident that the forecast of $50 billion (exports and domestic market) will be achieved, as will the target of $60 billion exports by 2009-2010."
Last fiscal, the industry's 31 per cent growth surpassed Nasscom's own projection of 27 per cent made at the beginning of the year. "The software and services export segment grew by 33 per cent to $31.4 billion from $23.6 billion in the previous fiscal (FY 2006), while the domestic segment grew by 23 per cent to $8.2 billion from $6.7 billion," Karnik said.
In the export segment, software services accounted for $18 billion, with a year-on-year growth of 35.5 per cent, while IT-enabled services and business process outsourcing (ITES-BPO) grew by 34 per cent to $8.4 billion. Engineering services and products contributed $4.9 billion, a year-on-year growth of 23 per cent.
"Marked by double digit growth, the year witnessed India's enhanced role in global trade with momentum in new contracts and renewals, increased traction in a range of services, expansion of geographic footprint, more mergers and acquisition and heightened interest among private equity investors to drive newer growth opportunities," said Lakshmi Narayanan, Nasscom's chairman.
As the largest employer in the organised sector, the IT industry recruited 16 lakh people in 2006-07 and created indirect jobs to 60 lakh million people across the country.
In the export segment, the industry hired around 12 lakh, with recruitments going up by 34 per cent year on year. The IT software and services firms added 177,000 techies, while the ITES-BPO segment recruited 138,000. "The industry's contribution to the national GDP (gross domestic product) has gone up to 5.2 per cent, impacting the socio-economic development of the country," said Lakshmi Narayanan, who is also vice-chairman of Cognizant Technology Solutions.