the chamber of commerce of the Indian IT software and
services industry in India, says the IT, ITeS sector will
reach $50-billion mark in FY 07-08.
chamber of commerce of the Indian IT software and services
industry in India, NASSCOM, has announced the findings
of its annual survey on the performance of the Indian
software and services sector (excluding hardware) and
outlook for FY 2007-08.
a part of the survey, NASSCOM also released the annual
ranking of Top 20 IT Software and Service exporters in
India in FY 2006-07 (excluding ITeS-BPO revenues).
maintained its position as the leading exporter followed
by Infosys and Wipro respectively.
to the annual NASSCOM survey, the Indian
industry (including domestic market) recorded an overall
growth of 30.7 per cent as against a projected growth
of 27 per cent, clocking revenues of $39.6 billion in
FY 2006-07 up from $30.3 billion in FY 2005-06. The software
and services exports segment grew by 33 per cent to register
revenues of $31.4 billion in FY 2006-07 up from $23.6
billion in FY 2005-06. The domestic segment grew by 23
per cent to register revenues of $8.2 billion in FY 06-07
up from $6.7 million.
the export segment, IT services exports have grown by
35.5 per cent to clock revenues of $18 billion; while
ITeS-BPO exports up by 33.5 per cent registering revenues
of $8.4 billion. Engineering services and products exports
clocked revenues of $4.9 billion, growing at 23 per cent
in FY 2006-07.
survey also projects that the overall IT software and
services sector will grow by 24-27 per cent clocking revenues
of $49-50 billion in FY08.
"The Indian software and services industry continued
its outstanding performance in FY 07. Marked by double
digit growth, FY 07 witnessed India''s enhanced role in
global trade with continued momentum in new contracts
and renewals, increased traction in a broader range of
services, expansion of geographic footprint, increased
mergers and acquisition, both domestic and cross-border,
and heightened interest among private equity investors
to drive newer growth opportunities.
industry continued to be amongst the largest employers,
directly employing more than 1.6 million and indirectly
creating employment opportunities for an additional 6
million people in related industries. The industry also
significantly impacted socio-economic development by contributing
5.2 per cent to the national GDP"
about the prospects of software and services industry
in the current fiscal, Mr. Kiran Karnik, President, NASSCOM,
said, "The software and services industry continues
to exceed forecasts year after year and we are confident
that the forecast (exports + domestic market) of $50 billion
in FY07-08 will be achieved, as will the target of $60
billion exports by FY09-10.
a market opportunity perspective, the indicators continue
to be positive with a potential addressable market of
over $300 billion, driven by growth of existing business
and new services line opportunities. While India continues
to be the most preferred destination for global IT sourcing
due to its talent pool, top-quality management and security
and quality focus, there are certain short to medium term
challenges that need to be addressed swiftly.
include rupee appreciation, suitability of available talent,
infrastructure development and sustenance of a positive
policy/regulatory environment. These require timely, consistent
and continued effort from all stakeholders including industry,
government, academia and NASSCOM".
records a revenue of $39.6 billion in FY 2006-07; exceeds
forecast of 27 per cent to register a growth of 30.7
revenues projected to grow at 24-27 per cent in FY 2007-08
Infosys and Wipro maintain their position as the Top
3 exporters in the NASSCOM Top 20 IT software and services
methodology of the Top 20
sends out a detailed Snap Survey questionnaire annually
to all its member companies, accounting for 95 percent
of the Indian IT software and BPO industry revenue. Information
collated through the questionnaire includes: aggregate
performance; service lines; verticals and geographies.
The Snap Survey form also takes into account the contribution
of the 100 percent owned overseas subsidiaries after deducting
all the double accounting.
Consultancy Services Ltd.
Computer Services Ltd.
Computer Systems Ltd.
Software Lab Ltd.
Software Systems Ltd. (Aricent)
Information Systems Ltd.
Information Solutions Ltd.
Global Solutions Ltd.
list does not include some companies whose corporate headquarters
are located outside India, but have significant India-centric
delivery capabilities, and have not shared their India-centric
they been ranked based on their India revenues, companies
such as Accenture, Cognizant, HP, IBM and Perot would
have also appeared in this ranking.
of industry performance in FY 2006-07
Totals may not add up due to rounding off
Software and Services Exports
(IT Services + ITeS-BPO + ES, Product Exports + Domestic
highlights of the NASSCOM survey
employee base estimated at nearly 1.6mn in FY07
in the exports segment estimated at over 12,00,000 which
translates into a year-on-year increase of ~34 per cent
software and services added over 177,000
employment attributed to IT-ITeS estimated to be 4x,
translating to ~6mn additional jobs
grew by over 33 per cent - was the main factor in the
industry performance exceeding expectations
marked by scope and scale expansion
is an integral part of most major global sourcing strategies
traction in application management and infrastructure
growth in FAO demand; steady expansion in emerging service
lines (legal, risk management)
M&A complementing organic growth
indicators support a positive outlook for global IT-BPO
unaddressed market potential for global sourcing
momentum in new contract signings, renewals / restructuring
activity in key client industries / PE activity to drive
new opportunities; focus on mid-market
of US economic recession moderating, corporate performance
and outlook is positive
continues to maintain its distinctive lead as the destination
of choice on parameters like talent suitability, maturity
and business environment
per cent of the suitable talent available across all
the next destination by a factor of 2.5
emphasis on security, quality
the experience curve to derive gains from operational
appreciation a concern
key focus areas for sustained leadership have been defined
the talent pool advantage by focusing on soft skill
growth in key business infrastructure strengthening
- plan for emerging cities and aim for proactive regulatory
reform to facilitate business in India
excellence to be driven amongst industry players to
ensure world leading benchmarks in performance in India
based delivery model
domestic market development
on quality and information security
an ecosystem to breed innovation
for FY 2007-08 estimate overall software and services
to grow by 24-27 per cent to $49-50 bn
growth rate masks the fact that incremental revenue
of $10 bn is higher than ever before
growth projected at 26-29 per cent; IT software &
services $28-29bn; ITeS-BPO
market growth forecast at 20-22 per cent with transportation,
retail, hospitality to supplement strong demand in financial
services & telecom
Includes Engineering services and Product Exports (FY
06 - $4.0 billion; FY 07 - $4.9 billion)