Indian IT Sector revenues to touch USD 64 billion by the end of FY2008
NASSCOM has announced the key findings of the Strategic Review 2008. Positive market indicators and a strong track record strongly support the optimism of the industry in achieving its aspired target of USD 60 billion in software and services exports and USD 73-75 billion in overall software and services revenues, by FY2010.
a) The Indian IT-BPO revenue aggregate is expected to grow by over 33 per cent and reach USD 64 billion by the end of FY2008.
b) IT exports (including hardware exports) are expected to cross USD 40.8 billion in FY2008 as against USD 31.9 billion in FY2007, a growth of 28 per cent.
c) Domestic IT market (including hardware) is estimated to reach 23.2 billion in FY2008 as against USD 16.2 billion in FY2007, a growth of 43 per cent
d) Banking, Financial Services and Insurance (BFSI) remains the largest vertical market for Indian IT-BPO exports, followed by High-technology and Telecom accounting for nearly 60 per cent in FY2007. Manufacturing and Retail followed, contributing 23 per cent to the aggregate. Other key segments include Media, Healthcare, Airlines and Transportation, and Utilities.
Commenting on the key findings of the Strategic Review 2007, Mr. Lakshmi Narayanan, Chairman NASSCOM and Vice-Chairman, Cognizant, said “The robust growth of the Indian IT-BPO industry by over 33 per cent in the current fiscal year reinforces the confidence of global corporations in India. As we move towards 2010, trends indicate that the industry is firmly poised for broad-based growth across industries and service lines, thereby strengthening India’s leadership position as the primary sourcing location for software, IT infrastructure and business process- related services.”
Mr. Som Mittal, President, NASSCOM said, “The Indian IT industry has been rapidly evolving; growth is on track to achieve, if not exceed the targets for 2010. The trends are interesting and findings indicate that the domestic market is poised for growth with IT spends trending upwards, particularly by the Government. We also see an increasing level of specialisation within the industry both in IT services and BPO, exhibiting signs of a rapidly maturing industry. However, there are global macro economic challenges; talent, manpower and infrastructure issues will need to be addressed and resolved, collectively. The industry has shown resilience and has taken several steps to mitigate the impact.”
In addition to the direct positive impacts on national income growth, foreign exchange reserve accumulation and employment generation, the sector has also spawned several ancillary industries, triggered a rise in direct-tax collections and propelled an increase in consumer spending, attributed to the significantly higher disposable incomes. It is estimated that every rupee earned in the Indian IT-BPO sector induces nearly another rupee of economic spending in the rest of the economy and every job created in the sector induces the creation of 4 more jobs in the economy.
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