The Hindu Business Line : Revenues to rise 33% this fiscal: Nasscom

Upbeat report: Mr Som Mittal (right), President, Nasscom, and Mr Lakshmi Narayanan, Chairman, Nasscom and Vice-Chairman, Cognizant Technologies, at a press conference in Mumbai on Monday. –

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Mumbai, Feb. 11 The Indian IT-BPO industry will exhibit a 33.3 per cent growth in revenues to reach $64 billion by the end of fiscal 2008, as against $48 billion reported in fiscal 2007, according to IT BPO industry body, the National Association of Software and Services Companies (Nasscom).

Moreover, the domestic IT market (including hardware) is estimated to grow by 43 per cent to reach $23.2 billion as against $16.2 billion in the previous fiscal, Mr Som Mittal, President, Nasscom, said while announcing the key findings of the Strategic Review 2008.

Further, the report estimates that the country is on track to achieve the target of $60 billion in the software and services exports sector by FY2010, on account of positive market indicators.

“The Indian IT industry has been rapidly evolving; growth is on track to achieve, if not exceed the targets of 2010. We see an increasing level of specialisation within the industry both in IT services and BPO, exhibiting signs of a rapidly maturing industry,” Mr Mittal said. Further, hardware, which remains the largest segment of the domestic market, is expected to grow at 44 per cent this fiscal..

Even though the industry is charting a growth path, there are global macro economic challenges – talent, manpower and infrastructure issues – that will need to be addressed collectively, added Mr Mittal.

The contribution of the technology sector to the GDP is expected to increase to 5 per cent in FY2008 from 1.2 per cent in 1998, it said.

It is estimated that every rupee earned in the IT-BPO sector induces nearly another rupee of economic spending in the rest of the economy and every job created induces the creation of four more jobs in the economy, it said.

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