The Hindu Business Line : IT/ITES driving realty, telecom, hospitality sectors

Ripple effect
Airline bookings by the sector likely to reach almost 4,299 seats per day by 2011-12.
The year-on-year `incremental' real estate and construction demand is likely to go up to 53.6 million square feet by 2011-12.
New mobile subscribers likely to go up to 4.39 lakh in 2011-12.

New Delhi , May 7

If you thought Indian IT and Business Process Outsourcing (BPO) sectors were all about export revenues and employment generation, it is time for a quick reality check.

The high-tech industry is significantly driving volumes and pushing up business across other sectors like real estate, construction, hotels, airlines and telecom.

During the current financial year, the sector is likely to consume about 2,198 seats per day on international flights, book over 8,900 hotel rooms per day and account for an `incremental' real estate and construction demand of 14.7 million square feet, as per preliminary estimates of software association, Nasscom.

"During 2005-06, the sector (both IT Services and ITES taken together) booked close to 1,844 seats per day on international airlines. By 2011-12 this number is slated to reach almost 4,299 seats per day. Even as these are conservative estimates, the numbers clearly reflect the ripple effect being created by our sector on other businesses," Mr Sunil Mehta, Vice-President of National Association of Software and Services Companies (Nasscom), said. Similarly in case of hotel rooms on a per day basis, Nasscom pegs the consumption by IT sector at a little over 7,000 rooms during last fiscal, a figure that is slated to rise to over 8,900 rooms during 2006-07. Mr Mehta said that the back-of-the-envelope calculations showed that the number could swell to over 30,000 by 2011-12.

In addition, the IT services and ITES sectors would account for year-on-year `incremental' real estate and construction demand of 53.6 million square feet by 2011-12 from 11.8 million square feet of `incremental space' demand in 2005-06.

On the communications side, Nasscom estimates that the sector would account for 1.42 lakh new mobile subscribers by 2006-07 as compared to 1.14 lakh during the previous year. "Going forward, the sector is likely to generate 4.39 lakh new mobile subscribers in the year 2011-12," he said.

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