Indian Software and Services Exports clock revenues of
USD 12.5 billion, registering growth of 30.5% in FY 2003-04

Total software and services revenues are USD 15.9 billion in 2003-04

Domestic market growth rate unchanged but outlook is positive due to lower tariffs on
hardware, increased volume growth and heightened recognition of benefits of IT usage

Launch of NASSCOM 4E framework for Trusted Sourcing

Indian Software and Services exports industry likely to register strong growth of around
30-32% in FY05
USD
New Delhi, June 03, 2004: NASSCOM, the chamber of commerce of the IT software
and services industry in India, today announced the findings of its annual survey on the
performance of the Indian software
Indian Software and Service exports
and services exports industry and
the outlook for FY 2004-05. As per
18
16.3
the NASSCOM survey, the Indian
16
software and services exports
12.5
14
11.2
12
industry has recorded growth of
9.6
8.9
10
30.5% growth clocking revenues of
7.1
8
5.1
USD 12.5 billion in FY 2003-04 over
6
3.6
export revenues of USD 9.6 billion
4
2.5
2
in 2002-03. Of the total software
0
and services exports in FY 2003-04,
2002-03
2003-04
2004-05E
IT
Services,
Products
and
7.1
8.9
11.2
IT Products and Services
2.5
3.6
5.1
ITES-BPO
Technology Services grew by 25%,
9.6
12.5
16.3
Total
Export
Revenues
registering revenues of USD 8.9
billion while ITES-BPO segment
IT Products and Services ITES-BPO Total Export Revenues
clocked revenues of USD 3.6 billion
recording a growth of 46%.
According to NASSCOM findings,
Indian
software
and
services
industry
(including
domestic
market) grew by 28.2% in FY
2003-04 registering revenues of
USD 15.9 billion up from USD 12.4
billion in 2002-03.
Indian Software & Service Industry
25
20.5
20
15.9
The NASSCOM survey says that the
Indian
software
and
services
industry is projected to cross the
US $20 billion mark in 2004-05,
with software and services exports
growing at 30-32% to reach
revenues of over USD 16.3 billion.
USD
15
12.4
16.3
12.5
9.6
10
5
0
2.8
3.4
4.2
2002-03
2003-04
2004-05
Software & Services Exports
9.6
12.5
16.3
Domestic market
2.8
3.4
4.2
Speaking on the occasion, Mr.
Jerry Rao, Chairman, NASSCOM
Software & Services Exports
Domestic market
Total Software & Service Industry
said, “Despite the challenges such
as slow growth of IT spending
globally, jobless recovery in major markets, appreciation of the rupee, the Indian
Total Software & Service
Industry
1
12.4
15.9
20.5
software and services industry has been able to maintain its growth momentum and
consolidate its partnership with overseas customers, adding to their competitiveness. An
encouraging trend during the year is a healthy growth of the IT services sector, which
has gone up from USD 7.1 billion in FY03 to USD 8.9 billion in FY04 registering a growth
of 25%. The year also witnessed increased maturity of the Indian ITES-BPO sector,
which grew by 46%, adding approximately 70,000 jobs”
“The need of the hour for the industry is to alleviate service excellence which includes
knowledge capital, information security and service delivery to further strengthen India’s
position as a leading software and services destination,” added Mr. Rao.
Mr. Kiran Karnik, President, NASSCOM, said, “The performance of the Indian
software and services exports industry once again demonstrates the tremendous value
that the industry is providing to its customers in terms of quality, productivity and
reliability. The healthy performance by the industry had a strong contribution from all
the stakeholders – large Indian services companies, the MNCs, Products as well as SME
companies. The year also saw 112 new start-ups, up from 47 in FY 2002-03. With the
fundamentals and the value proposition of India as the IT destination being robust, we
are optimistic of maintaining the growth trajectory.”
Key highlights of the NASSCOM survey









ICT majors heralding new trend – expanding revenues and enlarging global
footprints with two IT software and services companies entering the Billion
Dollar Club taking the total number of billion-dollar companies to three – TCS,
Infosys and Wipro
The industry has expanded its radar to new service lines such as package
software implementation, systems integration, R&D engineering and network
management as new horizon for robust growth
Americas continue to be the primary market with exports to this geography
constituting around 70% of total software exports, followed by UK with 15%. The
industry today exports software and services to 112 countries around the world.
Indian companies are aggressively exploring new markets in geographies like
Japan, Germany and France
Indian companies are expanding their customer base by tapping not only Fortune
500 companies but Global 2000 companies
Vast majority of SMEs registered a growth of over 20% in revenues. Most SMEs
report strong utilization rates and stable pricing.
Increase in the number of start-ups with approximately 2 new start-ups being
added every week
Captive units continue to account for 65% of the ITES-BPO industry with 1 new
captive center being added every week in 2003-04
Greater presence beyond metros – Vizag, Jaipur, Kochi, Pune, Ahmedabad,
Chandigarh
Strong focus on data protection, security, audit compliance
Elaborating on the future outlook, Mr. Kiran Karnik said, “The Indian IT industry is
among the top 10 industries in India. The industry is witnessing a transition phase and
evolving in terms of delivery models, service offerings, industry composition, market
reach etc. The year 2004-05 is expected to witness increase in the number of million
dollar customers and mid-to-large sized deals flowing into the country. At the same
time, the industry players are also building global delivery capabilities, recruitment in
international markets and engaging in M&A activity”.
Commenting on NASSCOM’s new security initiative, Mr. Jerry Rao said, “We have
launched a 4E framework for Trusted Sourcing. This framework encapsulated a blended
model of engagement, education, enactment and enforcement for ensuring highest
standard of information security in the outsourcing industry in India. NASSCOM is setting
2
up a high-powered Global and National Advisory Board to constantly evolve best
practices, both from a regulatory and compliance perspective”
About NASSCOM
NASSCOM is India’s National Association of Software and Services Companies, the
premier trade body and the chamber of commerce of the IT software and services
industry in India. NASSCOM is a truly global trade body with around 850 members, of
which nearly 150 are global companies from the US, UK, EU, Japan and China.
NASSCOM’s member companies are in the business of software development, software
services, and IT-enabled/BPO services.
For further information please contact:
Shweta Munjal
NASSCOM
Tel: +91-11-23015416-19
Email: shweta@nasscom.org
Charu Kohli
Genesis Public Relations
Tel: +91-11-23015416-19
Email: ckohli@genesispr.com
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