Revenues of Indian software industry to top $60 billion

The Indian software and services industry is expected to grow 16 percent this fiscal and log revenues of $60 billion despite the global slowdown, a top lobby for the industry said Wednesday.

The National Association of Software and Service Companies (Nasscom) said in its report that together with the business process outsourcing (BPO) sector, the revenues are expected to top $71.7 billion with a growth of 17 percent.

Of this, the export of software and services will account for $47 billion, growing by 16-17 percent. The association also said the domestic BPO industry would log a growth of as much as 40 percent this fiscal.

"The current financial year has been challenging for economies across the globe. But the Indian IT-BPO industry has exhibited a balanced growth," said Ganesh Natarajan, chairman of Nasscom and global chief executive of Zensar Technologies.

"We have seen Europe, Asia Pacific and rest of the world grow more than US, reaffirming geographical diversification as an encouraging trend for this industry," Natarajan told reporters, while releasing the association's report.

Nasscom also said it expected the software and BPO industry to grow by 15 percent annually till 2010-11 to log export revenues alone of $60-62 billion.

"Due to our strong fundamentals and as a derivative of the value we add to our global customers, the Indian industry will continue to grow in spite of global slowdown," said Som Mittal, president of the association.

"We also feel that this is a time of learning and optimisation for the industry, we would urge our member companies to see this as a silver lining."

Following are the key highlights of Nasscom's projections:

-Total IT-BPO industry to touch 71.7 billion in 2008-09

-The industry to account for 5.8 percent of the country's gross domestic product

-Domestic BPO market to growth by over 40 percent

-BPO exports estimated to grow by 17.5 percent to $12.8 billion

-IT services exports estimated to grow by 16.5 percent to $26.9 billion

-Software products, engineering services to grow by 14.4 percent to $7.3 billion

-Exports to Europe log highest growth, while US remains dominant market

-Uncertain economic environment to prevail in 2009

-Indian IT industry expected to grow 15 percent annually till 2010-11

-Exports projected to $60-62 billion by 2010-11

-Industry remains a net hirer with 2.23 million new direct jobs

-Indirect job creation estimated at 8 million