Things Can Only Get Better, Says NASSCOM

by Hanil Manghani    Feb 09, 2006

At a precursor to NASSCOM’s annual event, ‘NASSCOM 2006: India Leadership Forum, NASSCOM’s President Kiran Karnik, and S. Ramadorai, Chairman, NASSCOM and CEO & MD, TCS, expressed their optimism over the future prospects of the Indian IT-ITES scenario.

“The sector has grown and continues to record strong growth. There has been an annual growth of by 28% over FY 2004-05, service exports growth is estimated at 32%,” said Karnik.

“The Indian IT-ITES sector continues to chart double-digit growth and is expected to exceed $36 billion in annual revenue in FY 2006. Out of this, software and services exports are expected to grow by $23.4 billion - a jump of nearly 26%. Indian IT-ITES is well on track to achieve the targets that the industry aspires to achieve by the end of the decade,” said S. Ramadorai, Chairman, NASSCOM and CEO & MD, TCS.

With an increased GDP contribution of 4.8%, the growth of this sector is in turn propelling growth in other areas such as demand for office space and providing employment, besides adding to the country’s coffers and earning precious foreign exchange. India is aiming for an export target of $60 billion by FY 2010.

Karnik further informed that India would remain a favorite destination for companies despite newer locations emerging because of key advantages such as a qualified talent pool, a keen emphasis on security and quality, robust infrastructure and an active promotional role played by the government.

Elaborating further on employment opportunities, he informed that the industry touched 1,287,000. The industry has already initiated programs like comprehensive skill assessment and certification programs, an image enhancement program to build career opportunity awareness in the segment. Also, NASSCOM is working with the academia across the country to encourage and facilitate greater industry interaction

Speaking on potential for sustained future growth, Karnik said that according to a McKinsey study, there was plenty of room for growth, with only 9% of the offshoring segment and 12% of the BPO segment captured currently.