E-Paper
IT-ITES revenues to cross $36 bn
The sector will register a double digit growth and touch $60 bn mark in next 4 yrs, says Nasscom chief Kiran Karnik.
Continuing to clock double digit growth, the Indian IT-ITES sector is expected to exceed $36 billion in annual revenues in fiscal 06. Out of this, software and services exports are estimated to grow by 32% to reach $23.4 billion in FY06, according to the key findings of Nasscom’s Strategic Review 2006,
“The Indian IT-ITES is expecting an increase of nearly 28% in the current fiscal. Exports will account for nearly two-thirds of the total revenues. Domestic market is also coming into its own and will grow by nearly 22% in FY 2006,” said TCS CEO and Nasscom chairman S. Ramadorai.
The revenues from the IT services are estimated to touch $17.5 billion in FY2006, with exports and domestic sector contributing $13.2 billion and $4.3 billion. The employment in this sector is expected to touch 1,287,000 by 2006. While IT services are estimated to employ 3,98,000 people by 2006, ITES-BPO will recruit 4,09,000 people.
While IT-ITES sector will contribute to 4.8 per cent of GDP in FY06, engineering and R&D, software products hold significant opportunity for India — growing at 37 per cent and 43 per cent (CAGR FY 2003-06E), respectively.
IT-ITES sector is on track to achieve the targeted $60 billion in exports by FY 2010, according to the key findings of the survey released on the eve of its fifteenth annual event scheduled from February 15-17, 2006 in Mumbai.
Nasscom President Kiran Karnik said, “Year 2005 saw new service lines emerging and the industry reached the next level in services offered. In spite of the growth seen so far, it is estimated that less than 10 per cent of the addressable market for globally sourced IT-ITES has been captured till date, indicating significant headroom for growth.”
As global delivery matures, newer locations are emerging, according to the survey, but India remains the undisputed leader. Strong fundamentals will help sustain India’s value proposition as India holds 28% of the suitable talent available across all offshore locations (outranks next destination by a factor of 2.5).
