NASSCOM,
the premier trade body and voice of the IT software and service industry in
India, recently announced the key findings of its Strategic Review 2006, on the
eve of its fifteenth annual event 'NASSCOM 2006: India Leadership Forum, which
is scheduled to be held from Feb 15-17, in Mumbai.
Commenting on the key finÂdings
of the review S Ramadorai, Chairman, NASSCOM and CEO & MD, TCS said, “The
Indian IT-ITES sector continues to chart double-digit growth and is expected to
exceed USD 36 billion in annual revenue in FY06. Out of this, software and
services exports are estimated to grow by 32 percent, to reach USD 23.4 billion
in FY06. Indian IT-ITES is well on track to achieve the targets that the
industry aspires to achieve by the end of the decade.”
Kiran Karnik, President,
NASSCOM said, “2005 offered a steady growth for the industry. Along with
increased presence of Indian IT companies across the globe, we saw new services
lines emerging and the industry reached the next level in services offered.
Mergers and acquisitions by Indian players was also a key trend. In spite of the
growth seen so far, it is estimated that less than 10 percent of the addressable
market for globally sourced IT-ITES has been captured till date, indicating
significant headroom for growth.”
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IT |
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$ |
|
|
2004 |
2005 |
2006E |
|
IT |
10.4 |
13.5 |
17.5 |
|
Engineering |
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|
|
|
Total |
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The review suggests steady
growth for the sector. The Indian IT-ITES is expected to exceed USD 36 billion
in annual revenue in FY06, an increase of nearly 28 percent in this current
fiscal. It also states that exports will account for nearly two-thirds of the
total revenues, while IT-ITES sector will account for 4.8 percent of GDP.
The report also states that
the total IT software and services employment will reach 1,287,000 in FY06.
Currently, the BPO sector employs 230,000 people. NASSCOM estimates there will
be an addition of four lakh staff each in IT services and BPO sector by March
31, 2006.
Complemen-ting the conti-nued
growth in IT-ITES exports is a growing do-mestic market, which is expec-ted to
grow by nearly 22 per-cent in FY 2006. Strong demand over the past few years has
placed India amongst the fast-est growing IT markets in the Asia Pacific region.
Growth in the domestic market is witne-ssing the early signs of service line
depth that characterizes maturing markets. That is why global product companies
are looking to introduce localized versions of their software products to drive
usability and penetration.
2006 will also be the year
when India will make the transition from outsourcing to global sourcing.