IT growth seen falling to 21%

NASSCOM today announced the findings of its annual survey on the performance of the Indian software and services sector (excluding hardware) for FY07-08 and outlook for FY08-09.

India's software and services exports grew 29 per cent in 2007-08 to register a revenue of 40.4 billion dollar, up from 31.4 billion dollar in the previous year, NASSCOM said today.

The overall IT-BPO industry, including the domestic market, recorded 28 per cent growth to touch 52 billion dollar revenue in FY'07-08.

Within the export segment, IT services exports have grown by 28 per cent (in USD) to clock revenues of USD 23.1 billion; while BPO exports are up by 30 per cent (in USD) registering revenues of USD 10.9 billion. Engineering services and products exports clocked revenues of USD 6.4 billion, growing at 29 per cent (in USD) in FY 07 -08.

The survey also projects that the overall software and services revenues will grow by 21-24 per cent (currency adjusted) to touch USD 50 billion in FY08-09.

Tata Consultancy Service remained the top software and services exporter followed by Infosys and Wipro. The BPO exports clocked 30 per cent increase to reach revenue of 10.9 billion dollars.

Speaking at the conference, Som Mittal, President, NASSCOM said “The Indian IT-BPO industry’s resilience is reflected in its FY07-08 performance, with a 28.2 per cent overall growth rate and next year’s projected growth between 21-24 percent. Given that we are well on our way to achieve the target of USD 60 billion in exports by FY09-10, the industry is now focusing on improving productivity, efficiency, as well as opening up new markets and services”.

He further added “The next decade offers opportunities and challenges which will require new business models and the industry dynamics will also see significant changes leading to a many new industry drivers and enablers, and we will need to prepare ourselves for these. NASSCOM is developing a long term vision for 2020, to chart out the roadmap for all stakeholders and help them tap into this opportunity”.

Source: indiatimes.com