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News >> Technology >>
Nasscom adds 20% new members in 04-05
By agencies
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Thursday, 31 March 2005, 20:30 IST
NEW DELHI: The National Association of Software and Services Companies has added 20 percent new entrepreneur led IT and ITeS firms in the fiscal 2004-05.
In the last two years there has been a sort of resurrection for technology companies, most of whom had closed business due to unfavorable business and dotcom bust.
"The last two years have seen the return of the IT entrepreneur. During 2001-02 many entrepreneur-led companies had dropped out of the technology business and had shut shop in the wake of the dotcom bust, but in 2004-05 about 20 percent of the new members belonged to this category," Nasscom's Vice-President, Sunil Mehta said.
Nasscom added about 850 IT and ITES companies in 2003-04.
This figure has risen to about 900 in the current fiscal, of which close to 625 are predominantly IT services companies, and about 275 IT-enabled services firms. About 150 companies operate in both the areas.
While the burgeoning membership numbers reflect the sheer size of the software industry, the membership, to an extent, also traces the growth pattern of the IT sector in India.
Till the mid 1990s, Nasscom members were mostly large Indian companies.
"Late 90s saw smaller companies operating in areas such as software products, embedded software and Internet, becoming members of the software association. Subsequently, MNCs eyeing the Indian market came into fray," Mehta said.
With India positioning itself as an attractive IT services destination, early 2000 brought a wave of new members - global companies that were setting India development centers to capitalize on IT skill sets here, he added.