Advertisment

Indian IT to cross Rs 1,00,000 cr this year

author-image
CIOL Bureau
New Update



BANGALORE: Nasscom has projected that Indian IT industry would cross Rs 1,00,000 crore this year with CAGR of 28 percent. The hardware sector would contribute 21.2 percent to the overall pie, while ITES' share would be 20 percent. ITS would continue to dominate the industry with contribution of 58.8 percent.






Nasscom president Kiran Karnik said that today IT and ITES sector contributes around four percent to India's GDP.





Nasscom has also said that out of the estimated $28.3 billion that the industry would generate this year, domestic industry would contribute 10.2 percent while exports 18.1 percent. Last year, the ratio was 8.2:13.3 respectively. Of the domestic IT-ITES revenue pie, hardware would contribute 52.1 percent and software and ITS' share would be 4.8 percent and 37.6 percent respectively while ITES would contribute 5.5 percent.





In IT-ITES exports, ITS is dominating with 67.7 percent and ITES with 28.4 percent. Hardware contribution is 3.9 percent. As far as geographies are concerned, US is still the major export destination for companies with 69 percent share followed by Europe with 23 percent. Out of the total outsourcing pie of $39.6 billion, India is contributing the most with $17.2 billion followed by Canada with 12.6 percent.





This year since offshore is getting prominence in the industry, the offshore and onshore mix is going to be 71:29 percent respectively as compared to last year's 64:36 percent. The knowledge professionals have been increased to 1,045,00 from 842,000 last year.





According to Nasscom, the trend is clear that there is going to be upsurge in domestic IT market with localization efforts out-in by Microsoft and Redhat. The return of venture capitalists like General Atlantic and OAK hill buying 60 percent in GECIS is good sign for the Indian IT industry.





But, according to Nasscom, still there are things that we need to focus on like delivery capabilities in low cost geographies, operational excellence at the activity, function and business level, consultative selling capabilities to complement existing relationships, partnerships with hardware and software providers, a global workforce with global track careers and the domestic market.
















tech-news