Indian software industry grow by 52%

BANGALORE: The Indian software industry earned $5 billion in 1999 as against

$3.29 billion in 1998, recording a growth of 52 per cent, a Nasscom survey said.

In the current year, the industry was expected to grow to the size of $8

billion, registering a 60 per cent jump over 1999, the Nasscom President, Dewang

Mehta said. "This projected growth in the year 2000 disproves the fallacy

that Indian software industry is dependent merely on Y2K related projects,"

he said.

The annual revenues in 2000 would consist of $5.8 billion from software

exports and $2.2 billion from the domestic market. "Year 2000 will see a

more vibrant growth for the domestic industry. The increasing use of software

applications in the areas of banking, e-governance, healthcare, defence and

small office, home office will be the major factors behind this trend," Mr

Mehta said.

On the spread of Internet in the country, Mr Mehta said the number of

connections as on December 31, 1999 stood at 6.10 lakh and this was likely to

grow to 7.5 lakh by March this year. By December 2000, Internet connections

would cross 12 lakhs, expanding the user base to 42 lakh from the present 21

lakh. "We expect the first international gateway for private Internet

service providers to be operational by June 2000 and this will result in a

dramatic increase in Internet usage and connectivity in the country," Mr Mehta

said, while urging the Government to increase the total bandwidth capacity in

the country to 100 GB from the present 5.4 GB.

Shocked over the increasing instances of cyber hacking, Nasscom has decided

to set up a "National Cyber Cop Committee" to spread awareness on the

necessity to have Internet security. The committee, which would have 11 members,

representing the Government, industry, police and experts, would strive to chalk

out various guidelines on Internet security, Mr Mehta said. As a first step,

Nasscom is organising a seminar in the first week of March. "The committee will

suggest steps to improve safety of Web sites," Mr Mehta added.

E-commerce transactions in the country are expected at Rs.450 crore in

1999-2000. "With the cyberlaws likely to be cleared and implemented by

mid-2000, Nasscom expects a 500 per cent growth in 2000-01 with Rs 2,500 crore

worth of online transactions in India," Mr Mehta said.