IT sector to meet forecast despite rupee appreciation

Despite an appreciating rupee and slowdown worries in the US, the Indian IT sector is on track with its growth agenda.

The Indian software and services exports are expected to touch the $40 billion mark in FY08 ($31.3 billion in FY07), contributing nearly 64 per cent to the overall revenue aggregate (including software exports, domestic and BPO segments), according to IT trade body Nasscom's Strategic Review 2008.

In July 2007, Nasscom had forecast the industry will grow 24-27 per cent in the current financial year and the revenue was seen at $50 billion.

The domestic market is expected to touch $23 billion in FY08 compared with $16.2 billion in FY07. This implies that the Indian IT industry can exceed its aspired target of $60 billion by 2010 in software and services exports and $73-75 billion in overall software and services revenues by 2010.

Direct employment is expected to reach nearly two million "� an increase of about 375,000 professionals over FY07. The review also reveals that indirect employment is expected to be in the range of 7-8 million.

In FY07, the total IT industry revenue (including domestic segment and hardware) was $48 billion. Of this, the total software and services (exports) revenue was $31.3 billion and ITeS/BPO revenue at $9.5 billion.

IT services (excluding BPO, product development and engineering services), contributing 57 per cent of the total software and services exports, remains the dominant segment and expected to cross $23 billion, a growth of 28 per cent in the current financial year.

Technology products and related services sector spends worldwide are estimated to have grown 7.3 per cent to nearly $1.7 trillion in 2007"� overcoming concerns of budgetary cutbacks due to slowdown in the US.

Lakshmi Narayanan, chairman, Nasscom, and vice-chairman, Cognizant, said, "The robust growth of the Indian IT-BPO industry by over 33 per cent in the current financial year reinforces the confidence of global corporations in India."

Som Mittal, president, Nasscom, said, "The Indian IT industry has been rapidly evolving, growth is on track, if not exceed the targets for 2010."