Software & service exports clocks $6.9 B revenue in April-Dec

By siliconindia   |   Tuesday, 11 February 2003, 20:30 IST
Printer Print Email Email
Nasscom on Tuesday announced the results of its survey on the performance of the Indian software and service exports sector for the first three quarters, April to December 2002, FY 2002-03.

MUMBAI: The survey revealed that software and services exports from India generated revenues of 34,000 crores (US$ 6.9 billion) in April-Dec, 2002. This was up from 26,600 crores (US$ 5.6 billion) for the corresponding period in the previous year, and represented a growth of 28% over the same period last year. Arun Kumar, Chairman, NASSCOM, said, "Despite a slowdown in IT spending globally, increased interest by customers and aggressive foray by Indian vendors led to larger offshoring contracts to India. This led to a growth of 20% in IT Services and growth of 61% in ITES-BPO segment in April-Dec, 2002. This reflects the continued stable growth that the sector is able to maintain despite a much larger base." "Software and services exports are also increasing their contribution to overall exports from the country. While software exports accounted for 4.9% of India's export revenues in 1997, and is expected to increase to 20.4% in 2002-03", he added. The NASSCOM survey reveals that the markets that the Indian IT Services and ITES-BPO segment are targeting is expanding. In the IT services arena, Indian vendors are getting into new service lines such as IT and Network consulting, Packaged Software Installation and Support and Systems Integration. In the ITES-BPO segment, apart from consolidating their presence in traditional areas such as Customer Care, Finance and HR, Indian vendors are moving up the value chain by addressing segments such as Engineering Design, Animation and R&D Services. NASSCOM's survey also indicates that BFSI vertical continues to be the biggest vertical with a share of 36% during April - December, 2002 of Software and Service exports. The Manufacturing vertical is expected to increase its share to 14% in 2002-03. Apart from growth in traditional services, new verticals such as Healthcare, Retail and Utilities in the IT services sectors, will lead future growth in exports. The Retail sector currently has a share of 4% in 2001-02 and is expected to increase to 5% in 2002-03, Utilities, which has a share of 2% in 2001-02, is expected to grow to 3% in 2002-03 and Utilities, which has a share of 3% in 2001-02, is estimated to grow to 5% in 2002-03.