Indian IT Software and Services Revenues To Reach US $50Bn Mark in FY 07-08

NASSCOM, the chamber of commerce and "voice" of the IT software and services industry in India, announced the findings of its annual survey on the performance of the Indian software and services sector (excluding hardware) and outlook for FY 2007-08. As a part of the survey, NASSCOM also released the annual ranking of Top 20 IT Software and Service exporters in India in FY 2006-07 (excluding ITES-BPO revenues). TCS maintained its position as the leading exporter followed by Infosys and Wipro respectively. According to the annual NASSCOM survey, the Indian IT-ITES industry (including domestic market) recorded an overall growth of 30.7% as against a projected growth of 27%, clocking revenues of USD 39.6 billion in FY 2006-07 up from USD 30.3 billion in FY 2005-06. The software and services exports segment grew by 33% to register revenues of USD 31.4 billion in FY 2006-07 up from USD 23.6 billion in FY 2005-06. The domestic segment grew by 23% to register revenues of USD 8.2 billion in FY 06-07 up from USD 6.7 million

Within the export segment, IT services exports have grown by 35.5% to clock revenues of USD 18 billion; while ITES-BPO exports up by 33.5% registering revenues of USD 8.4 billion. Engineering services and products exports clocked revenues of USD 4.9 billion, growing at 23% in FY 2006-07. The survey also projects that the overall IT software and services sector will grow by 24-27% clocking revenues of USD 49-50 billion in FY08. Employment in the exports segment estimated at over 12,00,000 which translates into a year-on-year increase of ~34% , IT software and services added over 177,000, ITES-BPO added ~138,000 and indirect employment attributed to IT-ITES estimated to be 4x, translating to ~6mn additional jobs.

NASSCOM sends out a detailed Snap Survey questionnaire annually to all its member companies, accounting for 95 percent of the Indian IT software and BPO industry revenue. Information collated through the questionnaire includes: aggregate performance; service lines; verticals and geographies. The Snap Survey form also takes into account the contribution of the 100 percent owned overseas subsidiaries after deducting all the double accounting.