Indian IT/ITES industry logs 34.5% growth

NEW DELHI: The Indian IT-ITES industry has recorded 34.5 percent growth in exports, clocking revenues of $17.2 billion in FY 2004-05, as compared with export revenues of $12.8 billion in 2003-04.

As per the NASSCOM survey, of the total IT-ITES exports in FY 2004-05, IT software and services grew by 30.5 percent, registering revenues of $12 billion; while ITES-BPO segment clocked revenues of $5.2 billion, recording a growth of 44.5 percent. The domestic market revenues grow by 24 percent in FY 04-05.

According to the findings, the overall Indian IT-ITES industry (including domestic market) grew by 32 percent in FY 2004-05 registering revenues of $22 billion, up from $16.7 billion in 2003-04.

According to the NASSCOM survey, the industry employee base crossed the one million mark in FY05. IT software and services employee base has grown at a CAGR of 23.6 percent, from 242,000 in FY 2001-02 to 697,000 in FY 2004-05, while the ITES-BPO employee base has grown at a CAGR of 52.6 percent, from 42,000 in 2001-02 to 348,000 in FY 2004-05. Indirect employment attributed to IT-ITES was 2.5 million in FY 04-05.

NASSCOM has projected that the Indian IT-ITES exports are likely to grow by 30-32 percent in FY 05-06, clocking revenues of $22.5 billion. While UK and US still remain the dominant markets, Indian companies are gaining traction in newer geographies like Japan, Singapore and Germany.

Speaking on the occasion, NASSCOM chairman S Ramadorai said, “To sustain our competitive advantage, the industry must engage closely with academia to create the right talent pool, collaborate with the hardware industry in microelectronics and embedded software, maximize employment opportunities and elevate service excellence through R&D and quality-benchmarked delivery.”

NASSCOM president Kiran Karnik said, “The performance of the Indian software and services exports industry once again reinforces our confidence in attaining the projected target of $50 billion in FY 09. The year has witnessed greater adoption of the global delivery model, with Indian vendors establishing their presence in high-margin segments, along with a steady growth in traditional service lines in the ITES-BPO sector.”