Buoyancy in IT sector to continue in next quarters

Buoyancy in IT sector to continue in next quarters

By siliconindia staff writer   |   Tuesday, 02 November 2004, 08:00 Hrs
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CHENNAI: The Indian IT sector, which is doing exceedingly well going by the July-Sept quarter results, can sustain the momentum in the coming quarters as Indian IT firms enter new markets and gain business, experts say.
The current "boom" cannot be compared to the dotcom period of late 90s as the bulk of the work offshored to India is normal business, making it more sustainable, they told PTI.

The Big Three -- TCS, Infosys and Wipro led the way for Indian IT sector during the last quarter by posting net profits growth of over 50 per cent and hiring more than 14,000 people, giving indications that the software sector is going through one of its most successful phases in recent times.

Sensing the trend, Nasscom, India's trade association of software firms, said the software export target of 30-32 per cent growth for this fiscal will be achievable.

"India is gaining share from other parts of the world. Clearly, the pie is not expanding at the rate at which the Indian IT services industry is growing, but we are gaining market share," explained Cognizant Technology Solutions managing director, Chandrasekharan.

Buoyed by the trend, Cognizant, a fast growing IT firm, announced earlier last week that it was expanding Indian operations by investing an additional $34 million, taking the total investment for India to $76 million.

Nasscom president Kiran Karnik said the association was confident that the target of $12.5 billion software exports for this fiscal will be achieved. "Half-year results have been extremely good," he said.

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