Mumbai: India's IT and ITES companies have expanded their reach, consolidated operations and diversified into new areas even as the sector continued to chart double-digit growth. With annual revenues exceeding $36 billion and software and services exports of $23.4 billion (up 32 per cent) in FY06, the sector is on a steady growth path, Kiran Karnik, president, National Association of Software Service Exporters (Nasscom), said in a strategic review of the industry's performance.
The year "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 per cent of the addressable market for globally sourced IT-ITES has been captured till date, indicating significant headroom for growth," the review said.
"India's services exports grew by over 33 per cent in 2005-06 to clock revenues of $17.3 billion, led by a strong demand and increased traction for traditional services, new services , and new areas like engineering services," Nasscom President, Mr Kiran Karnik said commenting on the report.
The review of the industry's performance in 2005 estimates the expected growth in the current fiscal (FY06), details the trends across industry segments, assesses India's competitiveness as a sourcing destination, analyses the sustainability of the competitive edge of Indian IT-ITES industries. The review also outlines the opportunities, challenges and agenda for key stakeholders to further extend India's leadership in this space.
India, Karnik said, has become a hub for global MNC firms for