IT-BPO / Report by Union Communications and IT Ministry
Sector set to achieve $60 billion by 2010
Kolkata, UNI:
According to a special report by the information technology department the software and ITES exports from the country grew from $12.9 billion in 2003-04 to $23.6 billion in 2005-06 and exceeded by 32 pcer cent last fiscal.
The Indian IT-BPO sector is likely to achieve a target of $60 billion in export revenues by 2010, according to the Union Communications and Information Technology Ministry. According to a special report by the information technology department the software and ITES exports from the country grew from $12.9 billion in 2003-04 to $23.6 billion in 2005-06 and exceeded by 32 pcer cent last fiscal.
In 2006-07 the IT-BPO sector witnessed a revenue growth of about ten times over the last decade, the report stated adding that the total IT-ITES exports from the country exceeded $31.3 billion during the year.
The US and UK remained dominant markets for software and ITES exports by contributing 67 pc and 15 pc of total exports respectively, the report added. However, MNCs were keen to explore geographies for business development and expand global delivery.
Remedial actions
In the past 6 years India’s share in global sourcing is estimated to have grown from 62 to 65 pc for IT and 39 to 45 pc for BPO. However, the Central IT department assured that the Indian IT-BPO sector was ensuring that requisite remedial actions were undertaken in time to avoid any talent crisis. Several firms had established dedicated facilities and terms, for employee skill enhancement. The total number of IT and ITES-BPO professionals employed in India was estimated to have grown from 2,84,000 in 1999-2000 to 16,30,000 in ‘05-’06 and 3,40,000 the last year.
The Indian IT-ITES was estimated to create additional 3 mn jobs via indirect and direct induced employment. The domestic software market was growing, with definite signs of breaking out of the trend of hardware linked growth with the contribution of software and services exceeding that of hardware for the first time in 2005-06. The total size of the domestic market was expected to cross Rs 37,800 cr in 2006-07. Indian firms were gaining ground to compete with MNCs. The Indian IT-ITES sector contribution to the national GDP was estimated to rise from 1.2 per cent in 1999-2000 to 5.4 per cent during 2006-07.
