'Software, services exports to grow by 28%'

By siliconindia   |   Tuesday, 03 February 2004, 20:30 IST
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MUMBAI: Slower economic growth in the US market has not hurt the growth prospects of Indian software services exports. Estimates released by Nasscom (National Association of Software Service Companies) suggest that Indian software and service exports are likely to register 28% growth during the fiscal 2003-04 and generate $12 billion (Rs 55,510 crore) in revenues compared to $9.5 billion (Rs 46,100 crore) the previous year. The domestic market for IT would grow by more than 11% in 2003-04 and achieve a size of $7.4 billion (Rs 15,350 crore), Nasscom said. During the year, tier-1 IT companies (size of Rs 10 billion and above) contributed 32% of the total exports while contribution from tier-2 IT companies (Rs 1 billion to Rs 10 billion) stood at 24%. Back-end operations of MNCs in the country accounted for 26% of the total exports while small companies with revenues of over Rs 1 billion contributed to 12% to 14% of the total exports. The share of the IT to India ’s GDP is over 3% at present. Among IT service lines that grew the fastest are custom application development and maintenance, application outsourcing and package software and installation. Customer care continued to dominate growth in the ITES/BPO sector, followed by finance, back-office administration, content development, payment services and finally human resources. While revenues from export of telecom equipment dropped during the year (2002-03), those from banking, financial services and insurance rose to 39% from 35%. Healthcare, retail and telecom service providers reported a marginal increase in export revenues and have been labelled as sunrise sectors.