SOFTWARE revenue to grow 35 pc - Pricing levels have stabilised...
THE Indian software and services industry revenue is expected to touch $20.5 billion by the end of March 2005, registering a growth of 30-35 per cent during the year.
The total software and services revenue for year-ended March 2004 are estimated at $15.9 billion.
Of the $20.5 billion, $16.3 billion will accrue from software and services exports, while the rest $4.2 billion will accrue from the domestic market, according to the National Association of Software and Services Companies (Nasscom) survey.
During 2003-04, the IT services, products and technology services grew by 25 per cent registering revenues of $8.9 billion, while the information technology enabled services (ITES)-business process outsourcing (BPO) segment grew at 46 per cent recording a $3.6 billion as revenues, Nasscom said.
Outlining the key trends of the sector, the Nasscom President, Mr Kiran Karnik, said, "The pricing levels have been stabilised at $55-$60 per hour for onsite jobs, where as they are at $18-$24 per hour for offshore jobs."
The Indian industry exports software and services to 112 countries around the world. Americas continue to be the primary market with exports to this geography constituting around 70 per cent of total software exports, followed by UK with 15 per cent.
Indian companies are aggressively exploring new markets in geographies such as Japan, Germany and France.
The IT industry added more than one lakh jobs in 2003-04, taking the total employees in the sector to 8.10 lakh. ``In FY04, the ITES BPO industry added 65,000 jobs, while in software and services sector 40,000 jobs were created,'' said Mr Karnik. Indian IT companies were more aggressive in hiring than the multinational firms, he said.
Nasscom feels the Government should aggressively negotiate on services at the World Trade Organisation (WTO). "India has inherent strength in services and we should negotiate aggressively at the WTO on removing all barriers against free trade in services," he said.
Of Nasscom's 660 small and medium enterprise members, 414 members grew by over 20 per cent in 2003-04. The ITES-BPO presence is growing beyond metros and has started reaching cities such as Visakhapatnam, Jaipur, Kochi, Pune, Ahmedabad and Chandigarh.
The domestic market drivers will be applications for the mobile market and higher spend from education, banking, automotive and retail sectors.
Mr Karnik called for a consistent tax policy from the Government. He also expressed concern over infrastructure bottlenecks in areas such as airports and lack of urban mass transport systems.
The Nasscom Chairman, Mr Jerry Rao, said, "Customers will start defining core competency narrowly and will outsource most non-strategic processes. The BPO contracts will start becoming more complex in nature and there would be IT services and BPO bundling."
Asked about data security legislations, Mr Rao said the concerns raised by foreign clients could be addressed by minor changes in IT law and individual contracts.
Business Line
The total software and services revenue for year-ended March 2004 are estimated at $15.9 billion.
Of the $20.5 billion, $16.3 billion will accrue from software and services exports, while the rest $4.2 billion will accrue from the domestic market, according to the National Association of Software and Services Companies (Nasscom) survey.
During 2003-04, the IT services, products and technology services grew by 25 per cent registering revenues of $8.9 billion, while the information technology enabled services (ITES)-business process outsourcing (BPO) segment grew at 46 per cent recording a $3.6 billion as revenues, Nasscom said.
Outlining the key trends of the sector, the Nasscom President, Mr Kiran Karnik, said, "The pricing levels have been stabilised at $55-$60 per hour for onsite jobs, where as they are at $18-$24 per hour for offshore jobs."
The Indian industry exports software and services to 112 countries around the world. Americas continue to be the primary market with exports to this geography constituting around 70 per cent of total software exports, followed by UK with 15 per cent.
Indian companies are aggressively exploring new markets in geographies such as Japan, Germany and France.
The IT industry added more than one lakh jobs in 2003-04, taking the total employees in the sector to 8.10 lakh. ``In FY04, the ITES BPO industry added 65,000 jobs, while in software and services sector 40,000 jobs were created,'' said Mr Karnik. Indian IT companies were more aggressive in hiring than the multinational firms, he said.
Nasscom feels the Government should aggressively negotiate on services at the World Trade Organisation (WTO). "India has inherent strength in services and we should negotiate aggressively at the WTO on removing all barriers against free trade in services," he said.
Of Nasscom's 660 small and medium enterprise members, 414 members grew by over 20 per cent in 2003-04. The ITES-BPO presence is growing beyond metros and has started reaching cities such as Visakhapatnam, Jaipur, Kochi, Pune, Ahmedabad and Chandigarh.
The domestic market drivers will be applications for the mobile market and higher spend from education, banking, automotive and retail sectors.
Mr Karnik called for a consistent tax policy from the Government. He also expressed concern over infrastructure bottlenecks in areas such as airports and lack of urban mass transport systems.
The Nasscom Chairman, Mr Jerry Rao, said, "Customers will start defining core competency narrowly and will outsource most non-strategic processes. The BPO contracts will start becoming more complex in nature and there would be IT services and BPO bundling."
Asked about data security legislations, Mr Rao said the concerns raised by foreign clients could be addressed by minor changes in IT law and individual contracts.
Business Line
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