Strong at 28%

FY08 Revenue Performance and FY09 Forecast for the Indian IT Software and Services Sectors

• FY07-08 performance reflects sustained growth of 28% (currency adjusted)
• FY08-09 outlook strong with software and services revenue to grow by 21-24% (currency adjusted); Software and Services Exports forecast to reach USD 50 billion
• Industry rankings released for FY07-08
      o Genpact, WNS Global Services and IBM-Daksh lead the NASSCOM Top 15
         BPO rankings 
      o Tata Consultancy Services Ltd., Infosys Technologies Ltd. and
         Wipro Technologies Ltd. are Top 3 players in the NASSCOM Top 20 IT
         software and services exporters rankings and NASSCOM’s Top 20 IT-BPO
         employers

According to the annual NASSCOM survey, the Indian IT-BPO industry (including domestic market) recorded an overall growth of 28% (currency adjusted), clocking revenues of USD 52 billion in FY07-08 up from USD 39.6 billion in FY06-07. The software and services exports segment grew by 29% (in USD) to register revenues of USD 40.4 billion in FY07-08, up from USD 31.4 billion in FY06-07. The domestic segment grew by 26% (in INR) to register revenues of USD 11.6 billion in FY07-08.

Within the export segment, IT services exports have grown by 28% (in USD)  to clock revenues of USD 23.1 billion; while BPO exports are up by 30% (in USD) registering revenues of USD 10.9 billion. Engineering services and products exports clocked revenues of USD 6.4 billion, growing at 29% (in USD) in FY 07 -08.   

The survey also projects that the overall software and services revenues will grow by ~ 21-24% (currency adjusted) to touch ~ USD 50 billion in FY08-09.

“The Indian IT-BPO industry’s resilience is reflected in its FY07-08 performance, with a 28.2% overall growth rate and next year’s projected growth between 21-24 percent. Given that we are well on our way to achieve the target of USD 60 billion in exports by FY09-10, the industry is now focusing on improving productivity, efficiency, as well as opening up new markets and services”, says Mr. Som Mittal, President, NASSCOM

He further added “The next decade offers opportunities and challenges which will require new business models and the industry dynamics will also see significant changes leading to a many new industry drivers and enablers, and we will need to prepare ourselves for these. NASSCOM is developing a long term vision for 2020, to chart out the roadmap for all stakeholders and help them tap into this opportunity”.