Indian ITeS exports cross $31 bn in 2006-07

The IT boom continues to yield strong growth figures for the industry. The software and ITeS exports from India are expected to exceed $31.3 billion during the year 2006-07, up by 32% compared to the previous year. Also, the software and ITeS sector’s contribution to the gross domestic product (GDP) is expected to rise to 5.4% in 2006-07, up from 4.8% in 2005-06.

According the 2006-07 annual report of the ministry of communications and information technology, while the US and the UK continue to be the dominant markets for IT exports, Indian IT firms are also keenly exploring new geographies. Today exports to the US and UK make up 67% and 17% of the total exports, respectively. Banking, financial services and insurance and technology (high tech and telecom) are the main IT verticals accounting for nearly 60% of total exports. This is followed by manufacturing retail, media, utilities, healthcare and transportation that are rapidly growing verticals, says the report.

Over the last six years, India’s share in global sourcing is estimated to have grown from 62% to 65% for IT and from 39% to 45% for BPOs. The report attributes the fast growth of the IT-BPO segment to the leading demand for global sourcing and the evolving socio-political attitudes.

When it comes to employing professionals, the industry has brighter numbers. The total number of IT and the ITeS-BPO professionals employed in India is estimated to have grown from 2,84,000 in 1999-2000 to 1,6,30,000 in 2005-06, growing by over 3,40,000 in the last year alone. Indian IT-ITeS is estimated to have helped create an additional three million job opportunities through indirect and induced employment. Indirect employment includes expenditure on vendors, including telecom, power, construction and IT transportation.

The domestic IT market also seems to be picking up. The report highlights that the total size of the domestic market is expected to cross Rs 37,800 crore in 2006-07, growing by 28% since 2005-06. Now, Indian firms are in neck-to-neck pace with the MNCs, says the report.

SOURCE:ECONOMICTIMES.COM