IT exports to be higher this financial year

Information technology (IT) exports from India are expected to be higher in the current financial year, on the back of strong numbers registered during the second quarter by the IT companies.

“IT exports, which were earlier estimated to grow around 5 per cent over the previous financial year, are now expected to witness a 13-15 per cent growth in the current financial year on the back of higher numbers posted by some of the IT companies,” S Gopalakrishnan, chief executive officer of Infosys Technologies, said at the inauguration of the 13th edition of India’s information and communication technology event, Bangalore IT.biz 2010 here.

He said the earlier estimate would be revised upwards. IT exports from the country touched $50 billion in 2009-10 and was earlier expected to grow 5 per cent in the current financial year.

However, recovery in the global economy with demand revival had enabled IT companies to post double-digit growth during the second quarter. Companies like Infosys and TCS have posted double-digit growth in revenue in the July-September period.

Referring to the overall industry, he said the IT and BPO industry was expected to touch around $71.7 billion this financial year, accounting for 5.8 per cent of the country’s gross domestic product.

“We will reach this figure with a growth rate of 10 per cent over last financial year,” he said. He also said the industry would generate 150,000 to 170,000 jobs in the current financial year.

He added the growth of IT industry should spread to Tier-II and Tier-III cities. “The Centre’s decision to develop IT industry in 43 Tier-II and Tier-III cities will help in penetration of IT industry in those areas”.

However, he emphasised on infrastructure growth in cities to sustain the momentum of IT growth in the country.