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| 1. |
Revised
Nasscom-McKinsey Study 2002 |
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i. |
According to the revised
Nasscom-McKinsey Study 2002, by 2008 the IT Services and IT Enabled
Services industry in India would employ 4 million people, account
for 7 percent of the country's GDP and 30 percent foreign exchange
inflows. |
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ii. |
The NASSCOM-McKinsey study
2002 states that despite the depressed economic conditions and a marked
slowdown in the growth rate of the industry, the long term potential
of the industry is robust. Since the historical growth rate of the
software industry has been higher than that required to achieve the
vision of the 1999 report, the CAGR required between 2002 and 2008
would be 34%. |
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iii. |
ITES opportunities by 2008 |
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| |
|
| Service Lines |
$billion |
|
| HR |
3.5 - 4 |
| Customer Care |
8 - 8.5 |
| Payment services |
3 - 3.5 |
| Content development and others |
2.5 - 3 |
| Administration |
1.5 - 2 |
| Finance |
2.5 - 3 |
| |
|
| Total |
21 - 24 |
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| 2. |
February
2005 news reports |
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i. |
As per February 2005 news
reports, according to NASSCOM, the Indian IT industry is expected
to register a growth of 31 percent to reach revenues of $28 billion
in the financial year 2004-05. |
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ii. |
The industry registered
a growth of 34 percent in 2003-2004 clocking revenues of $21.5 billion.
Indian software and services exports are likely to witness a growth
of 35 percent to reach revenues of $17.3 billion in 2004-2005 compared
to 33 percent and $12.8 billion in 2003-04. |
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iii. |
The largest share of exports
and service came from the financial sector at 40 percent in 2004;
the Nasscom survey said adding that high spending was by banks, insurance
and security firms. However healthcare, telecommunications, retail
sector and government increased their IT budgets. |
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iv. |
The study also notes the
declining growth rate of Indian software exports was attributed to
the growing share of offshore development as compared to on-site services. |
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