The Software Development India – IT sector is on track with its growth agenda, despite an appreciating rupee and slowdown worries in the US. The Indian software and services exports are expected to touch the $40 billion mark in Financial Year 2008 ($31.3 billion in Financial Year 2007), contributing nearly 64 per cent to the overall revenue aggregate (Including software exports, domestic and BPO segments).
According to IT trade body Nasscom’s strategic Review 2008, the Indian software and services exports are expected to touch the $40 billion mark in FY08 ($31.3 billion in FY07), contributing nearly 64 per cent to the overall revenue aggregate (including software exports, domestic and BPO segments).
In July 2007, Nasscom had forecast the industry will grow 24-27 per cent in the current financial year and the revenue was seen at $50 billion.
In Financial Year 2008 the domestic market is expected to touch $23 billion compared with $16.2 billion in Financial Year 2007. This means that the Indian IT industry can exceed its aspired target of $60 billion by 2010 in software and services exports and $73 -75 billion in overall software and services revenue by 2010.
The review reveals that direct employment is expected to reach nearly two million – an increase of about 375,000 professionals over Financial Year 2007. The review also reveals that indirect employment is expected to be in the range of 7-8 million.In Financial Year 2007, the total IT industry revenue (including domestic segment and hardware) was $48 billion. Of this, the total software and services (exports) revenue was $31.3 billion and ITES/BPO revenue at $9.5 billion.
IT services (excluding BPO, product development and engineering services), contributing 57 percent of the total software and services exports, remains the dominant segment and expected to cross $23 billion, a growth of 28 percent in the current Financial Year.
Technology products and related services sector spends worldwide are estimated to have grown 7.3 percent nearly $1.7 trillion in 2007 – overcoming concerns of budgetary cutbacks due to slowdown in the US.
“The robust growth of the Indian IT – BPO industry and Software Development by over 33 percent in the current financial year reinforces the confidence of the global corporations of India”. Stated by Lakshmi Narayan, Chaiman, Nasscom, and Vice-Chairman, Cognizant. Som Mittal, President of Nasscom said “The Indian IT industry- Software Development Services and BPO industry has been rapidly evolving, growth is on track, if not exceed the targets for 2010”.