IT-BPO revenue to reach $75 bn target: Nasscom

By IANS

Mumbai : Brushing aside fears that the rising rupee could dent a hole in the growth of Indian software industry, the sector is set to achieve a healthy 33 percent growth in the fiscal year 2008.


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The industry is also on fast-track to achieve the target of $75 billion in overall software and services revenues by 2010, Nasscom, an umbrella body of the Indian IT industry, said here Monday.

Releasing the Strategic Review for 2008, Nasscom Chairman Lakshmi Narayanan said despite heavy pressures, the industry continues to perform very well and managed to achieve its stretched growth targets year after year.

“Positive market indications and strong records support the optimism of the industry in achieving its aspired target of $60 billion in software and services exports and $73-75 billion in overall software and services revenue by fiscal 2010. Direct employment is expected to reach two million people,” Narayanan said.

“The robust growth of the Indian IT-BPO industry by over 33 percent in the current fiscal reinforces the confidence of global corporations in India. As we move, the trend indicates that the industry is firmly poised for broad growth across industry and service lines. It strengthens India’s leadership position as the primary sourcing location for software IT experimentation and business process related services,” he added.

Nasscom said in its review that though the US technology spending was cut short, global technology spending forecasts remain strong, supported by the momentum in the emerging market economies, including the Asia Pacific countries.

According to the review, the global sourcing penetration was estimated to be growing at nearly four times the rate of absolute technology spending. This signified immense opportunities for rapid growth.

Giving the sector-wise break-up, Nasscom said, out of the estimated $31 billion from IT services, $23.1 billion came from exports, with the domestic market contributing the balance.

The share of exports and domestic markets for the ITES-BPO segment was $10.9 billion and $1.6 billion respectively. Engineering services, R&D and software products saw an export of $6.3 billion and domestic sales of $2.2 billion.

The hardware sector would see a $12 billion market in the current fiscal with domestic market alone contributing $11.5 billion.

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