Financial Daily from THE HINDU group of publications
Friday, Jun 03, 2005
Info-Tech - Software
Industry & Economy - Exports & Imports
34 pc growth in software, services exports
Mr S. Ramadorai, Chairman, Nasscom (right), and Mr Kiran Karnik, President, at a news conference in Bangalore on Thursday. G.R.N. Somashekar
Bangalore , June 2
CONTINUING its growth momentum on the back of strong off-shoring interest, the country's software and services exports were expected to grow by 30-32 per cent in 2005-06, said the National Association of Software and Service Companies (Nasscom) on Thursday.
Exports of software and services are seen growing to $22.5 billion in 2005-06, up from $17.2 billion in the previous year.
The Nasscom President, Mr Kiran Karnik, while announcing the findings of the annual industry performance here, said software and services exports grew 34 per cent in 2004-05, the highest growth since slowdown in 2001.
"This bounce back in growth after 3-4 years validates the model of off-shoring," he said.
Software exports alone grew 31 per cent to $12 billion while revenue from IT-enabled services rose 45 per cent to $5.2 billion.
The total IT and ITES revenues, including both domestic and exports, grew 32 per cent against a forecast of 25 per cent to touch $22 billion during the year. This is expected to grow by 30 per cent in the current year to $28.5 million, Mr Karnik said.
"The performance of the industry once again reinforces our confidence in attaining the projected target of $50 billion by March 2009," Mr Karnik said.
The employee base of the IT and ITES industry crossed the one-million mark during the year. Software services sector directly employed about 6.97 lakh people, while the ITES industry employed about 3.48 lakh people at the end of last fiscal.
The indirect employment created by the IT industry in areas such as catering, security and transport services stood at 2.5 million. The growth in employee base also spread during the year to Tier II cities, he said.
"The Indian industry has been able to maintain its growth momentum and consolidate its partnership with overseas customers," said Mr S. Ramadorai, Chairman of Nasscom and Tata Consultancy Services.
"In a bid to sustain our competitive advantage, the industry must engage closely with academia to create the right talent pool," he added.
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