Nasscom sees software revenues at $22.2 billion

The Indian software and services industry is estimated to clock revenues of $22.2 billion in fiscal year 2004-05, according to National Association of Software and Service Companies (Nasscom), the apex body of the industry.

The industry clocked revenues of $16.7 billion in 2003-04, which was up by 32.53 per cent over the same period in 2002-03. Of the estimated $22.2 billion revenues, exports is expected to contribute a $17.3 billion while domestic turnover will stand at $4.9 billion.

The software and service exports contribution has been continuously increasing to the overall foreign exchange revenues.

Nasscom president, Kiran Karnik said that the industry is expected to cross the Rs 100,000 crore mark in revenues at the end of this financial year.

The sector estimated to contribute close to 90 per cent to Forex reserves growth." The IT industry's contribution to the Indian GDP has been on an upward curve from 1.4 per cent om 1998-99 to more than 3 per cent in 2003-04.

The total IT industry that comprises both the software services, products , BPO and hardware is expected to clock $28.2 billion in the current fiscal.

In 2003-04, it registered a growth of 34 per cent with revenues of $21.5 billion.

Over the next few years, according to Nasscom, the Asia-Pacific region will emerge as a key target region for the Indian software and services industry as it will be important for Indian players to expand to new regions.

The Indian ITeS-BPO, one of the largest employment generator, according to Karnik is likely to grow to $5.7 billion in the fiscal 2004-05.

On the geographical breakdown, Karnik stated that North America represented 70 per cent of Indian software exports in 2003-2004 with Europe ranking second at 22.25 per cent of the total exports.

North America remains the dominant market for ITeS -BPO business in India.

Indian companies have been gradually able to increase the European share in total software and services exports and are aggressivly exploring new markets in geographies like Japan, Germany and France.

Karnik also announced the Nasscom annual event to be held this month from 8-10 and the keynote address will be given by the President APJ Abdul Kalam on the last day of the event.