IT services sector to touch $70 bn this year: Som Mittal

The information technology and services sector to reach around $70 billion (around Rs 3.2 lakh crore) by the end of current fiscal, an increase of 41.5 per cent compared to last year, when it stood at $49.7 billion (around Rs 2.26 lakh crore).

Nasscom president Som Mittal said the growth rate exceeded industry's expectation and the top IT companies reported around 20 per cent growth during the first half of the year.

“The growth is due to the improved performance in the banking and financial services segment and the exports to US. We are looking to the third quarter results to confirm this,” he said.

The industry is expected to reach $225 billion (around Rs 10.26 lakh crore) by the year 2020.

The engineering service industry has also seen a tremendous growth, reaching $10 billion (around Rs 45,585 crore) market, he added.

“Going forward, we expect around 80 per cent of the opportunities would come from unexplored segments, including the new customers and new verticals which may also bring up challenges,” said Mittal.