IT must target $200 bn revenue: Prez
"IT services and BPO sector accounts for 3.5% of the global market, which should be increased to 15%," he said.india Updated: Feb 17, 2006 19:08 IST
President APJ Abdul Kalam on Friday urged captains of the Indian IT industry to aspire for a market share of $200 billion by 2010 by encouraging innovation and creating a vast pool of qualified professional base.
The booming tech sector should explore new markets in Asia, Asean and African nations for achieving sharply higher growth, the President told an IT seminar organised by the National Association for Software and Service Companies.
"IT services and BPO (business process outsourcing) sector accounts for 3.5 per cent of the global market, which should be increased to 15 per cent of the global business volume," said Kalam.
"That means we should aspire to increase our market share to $200 billion in the IT services, ITES and BPO sector," he said.
"We have to collectively see how we can realise this goal at least by 2010 if not by 2008."
The Indian IT-ITES industry is expected to grow at a healthy clip of 28 per cent in the current financial year ending March 31, 2006, to touch $36 billion as overseas companies continue to outsource jobs to local firms.
The sector, one of the key contributors of overall economic output, is projected to earn $60 billion revenues in exports by the end of the financial year 2009-10.
Quoting an industry research report that indicated the addressable market for global offshore including BPO is currently around $300 billon, Kalam said the Indian IT industry was tapping only 10 per cent of that pie.
"If we have to reach the goal of $200 billion by 2010 we have to work to refine the overall available addressable market across the world and create awareness among the clients about the win-win situation of outsourcing," he said.
On the roadmap for achieving the target, the president said India, with its cost advantage in software services, had to be competitive in quality of products and just in time delivery.
He also urged the premier Indian IT industry umbrella group and governments to help small and medium enterprises in the technology space to carve out a niche in the competitive global market.
"Turn your focus on India, which has one billion people as market force who need potential in education, healthcare, e-governance and e-business," said Kalam.
"Certainly, it is the responsibility of the government, Nasscom and the Indian industries to enable a level playing field for the growth of small and medium ICT industries to contribute for bringing down the digital divide."
The president urged the IT industry captains to develop BPO industry in the smaller cities with a population of around one million. This can be extended further to towns with 5,00,000 people.
"Establish joint ventures between countries such as the Philippines and Korea and other East Asian countries where the infrastructure is already there and the overall cost of operations is low," he told the delegates.