Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/rncos/public_html/includes/config.php on line 24
Indian IT Export Revenue to Cross $50 Billion in Current Fiscal
Search Report
Home   About Us   Press Room   Custom Research   Research Store   Contact Us

Search Archive:  

Indian IT Export Revenue to Cross $50 Billion in Current Fiscal

Feb 15, 2010
The Indian IT industry export revenue is projected to cross $50 Billion in the current fiscal owing to growth in verticals like healthcare, retail and utilities.

According to the National Association of Software and Service Companies (NASSCOM), export revenues of BPO and IT companies in India are projected to exceed $50 Billion, a rise of 5.5%, in the current fiscal 2009-10, and will further grow by 13-15% to reach $56-57 Billion in 2010-11, as per the news published by The Economic Times.

It is expected that the verticals like healthcare, retail and utilities will contribute high share to the revenues even though the demand varies in the banking financial services and insurance sectors. For instance - the demand is weak in retail banking and mortgages, whereas credit card collections have recorded outstanding growth.

The Indian IT revenue has substantially increased owing to robust demand for IT services in the domestic market. The government has raised its level of IT spending giving strong impetus to domestic demand. Moreover, new fields like product development and engineering services exhibited exceptional growth, generating combined revenue of over $10 Billion.

The Indian IT market bottomed out in H1 2009, but the trend got reverse in the second half of the year. There is an ample pent-up demand to set a positive trend for the current year, 2010.

By increasing its utilization rates, cost efficiencies, modifications in all new business and pricing modals, verticals and markets, the IT industry has reinvented itself. In this phenomenon of improving value proposition, it has been successful to become a business transformation facilitator for its clients. In addition, the industry has intensified its global manpower, employing specialized talent and constructing a truly universal delivery model. With an enhanced value proposition, the industry players hope for a bright future.

The direct employment in the IT sector is estimated to exceed 2.3 Million, a growth of 4% with addition of more than 90,000 jobs, in the fiscal 2009-10. It is also expected that with a growth of 6.5%, 1,50,000 jobs will be generated in the next year.

According to a Research Analyst at RNCOS, “Despite the positive growth projections for the current and next fiscal year, the industry may face some challenges. Unemployment in the US is one of the biggest challenges that could dent the industry growth. In the context of high unemployment in the United States, Barack Obama said in January 2010 that he would stop tax benefits for the companies, which outsource work abroad. The industry is surely going to suffer as over 60% of software export revenues come from the US.”

Related Market Research Reports:
Indian DTH Market Forecast to 2012
Global WiMAX Market Analysis
Global RFID Market Analysis till 2010
All Research Reports
Research Reports