The Indian information technology and ITeS sectors are expected to account for $36 billion in revenue in 2005-06, and increase of 28 per cent over the previous year, the National Association of Software and Service Companies said on Thursday.
Releasing the key findings of its "Strategic Review 2006", Nasscom chairman S. Ramadorai said, "The Indian IT-ITES sector continues to chart double-digit growth and is expected to exceed $36 billion in annual revenue in 2005-06. Out of this, software and services exports are estimated to grow by 32 per cent, to reach $23.4 billion. Indian IT-ITES is well on track to achieve the targets that the industry aspires to achieve by the end of the decade."
The Strategic Review 2006 reviews the industry’s performance in 2005, estimates the growth expected in the 2005-06, besides detailing the service line trends observed across the various industry segments over the past year.
"The previous year offered a steady growth for the industry. Along with increased presence of Indian IT companies across the globe, we saw new services lines emerging and the industry reached the next level in services offered. Mergers and acquisitions by Indian players was also a key trend. In spite of the growth seen so far, it is estimated that less than 10 percent of the addressable market for globally sourced IT-ITES has been captured till date, indicating significant headroom for growth," Mr Kiran Karnik, president of Nasscom, said.
The review said that exports would account for nearly two-thirds of the total revenues, and the IT-ITeS sector is expected to contribute 4.8 per cent of GDP in 2005-06. "Engineering and R&D, software products hold significant opportunity for India - growing at a CAGR of 37 per cent and 43 per cent, respectively," it said.The review said that the total IT software and services employment is expected to reach 12,87,000 this fiscal.
Industry has already initiated several initiatives to further enhance the availability of and access to suitable talent for IT-ITES in India,"Complementing the continued growth in IT-ITES exports is a growing domestic market, which has come into its own, and is expected to grow by nearly 22 per cent," it said.
The review said that Indian IT companies were beginning to transition from outsourcing to global sourcing to drive the next phase of evolution in process quality frameworks and practices. "Having aligned their internal processes and practices to international standards, Indian companies are seeking to further increase the quality and productivity benchmarks," it said.
Releasing the key findings of its "Strategic Review 2006", Nasscom chairman S. Ramadorai said, "The Indian IT-ITES sector continues to chart double-digit growth and is expected to exceed $36 billion in annual revenue in 2005-06. Out of this, software and services exports are estimated to grow by 32 per cent, to reach $23.4 billion. Indian IT-ITES is well on track to achieve the targets that the industry aspires to achieve by the end of the decade."
The Strategic Review 2006 reviews the industry’s performance in 2005, estimates the growth expected in the 2005-06, besides detailing the service line trends observed across the various industry segments over the past year.
"The previous year offered a steady growth for the industry. Along with increased presence of Indian IT companies across the globe, we saw new services lines emerging and the industry reached the next level in services offered. Mergers and acquisitions by Indian players was also a key trend. In spite of the growth seen so far, it is estimated that less than 10 percent of the addressable market for globally sourced IT-ITES has been captured till date, indicating significant headroom for growth," Mr Kiran Karnik, president of Nasscom, said.
The review said that exports would account for nearly two-thirds of the total revenues, and the IT-ITeS sector is expected to contribute 4.8 per cent of GDP in 2005-06. "Engineering and R&D, software products hold significant opportunity for India - growing at a CAGR of 37 per cent and 43 per cent, respectively," it said.The review said that the total IT software and services employment is expected to reach 12,87,000 this fiscal.
Industry has already initiated several initiatives to further enhance the availability of and access to suitable talent for IT-ITES in India,"Complementing the continued growth in IT-ITES exports is a growing domestic market, which has come into its own, and is expected to grow by nearly 22 per cent," it said.
The review said that Indian IT companies were beginning to transition from outsourcing to global sourcing to drive the next phase of evolution in process quality frameworks and practices. "Having aligned their internal processes and practices to international standards, Indian companies are seeking to further increase the quality and productivity benchmarks," it said.