ID :
12007
Thu, 07/10/2008 - 10:41
Auther :
Shortlink :
http://m.oananews.org//node/12007
The shortlink copeid
Software exports grow 29%; revenue growth to slowdown in FY09
New Delhi, July 10 (PTI) - Software and services export growth have slumped in 2007-08 as it grew by a lower 29 percent even as revenue touched 40.40 billion dollars, up from31.40 billion dollars in the previous year.
The exports grew slower hit by the global economic scenario of a sub-prime crisis, fears of a U.S. recession, resulting in slowing down of technology spending and the decline in growth rate is also likely to continue in thecurrent fiscal.
The overall I.T. revenue from domestic as well as overseas market is also likely to grow more slowly at 21-24 per cent in 2008-09, the industry body Nasscom said Wednesdayin its guidance.
The software and services exports segment grew by 33percent in 2006-07.
The overall I.T.-B.P.O. industry, including the domestic market, recorded 28 percent growth to touch 52-billion-dollar revenue in FY'07-08, which is also lower than the 30.7 percent growth in 2006-07. In 2008-09, this growth could slow down to 21-24 percent, National Association of Software and ServiceCompanies (Nasscom) said Wednesday.
Acknowledging slowdown in decision-making, Nasscom President Som Mittal said the lower growth rate on a higher base revenue is not a bad situation as external situations like oil price rise, global economic slowdown are outside one's control and India being a part of global delivery chaincannot be insulated from these developments.
"Some slowdown in decision-making is seen. There will be a natural reduction in growth rate. On a larger base a few percentage point reduction in growth rate will be seen as robust," he said, adding there could be some revival in thelater half of 2008.
"While U.S. slowdown and its impact on key markets is still a concern, indicators suggest a revival in tech-spending in the second half of 2008. Budget allocations will be moreback-end loaded in 2008," Mittal said.
While the expected slowdown in banking and financial services continues, clients in other sectors likemanufacturing and healthcare indicate higher growth, he said.
"The Indian I.T.-B.P.O. industry's resilience is reflected in its FY'07-08 performance, with a 28.2 percent overall growth rate and next year's projected growth between21-24 percent.
"Given that we are well on our way to achieve the target of 60 billion dollars in exports by FY'09-10, the industry is now focusing on improving productivity, efficiency, as well asopening up new markets and services," Mittal said.
This fiscal, the exports is on course to reach50-billion-dollar target.
Within the export segment, I.T. services exports have grown by 28 percent to clock revenues of 23.1 billion dollars while B.P.O. exports are up by 30 percent registering revenue of 10.9 billion dollars. Engineering services and products exports clocked revenues of 6.4 billion dollars, growing 29percent.
"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 prepareourselves for these," he added.
Tata Consultancy Service remained the top software andservices exporter followed by Infosys and Wipro. The B.P.O.
exports clocked 30 percent increase to reach a revenue of10.9 billion dollar.
He said, at present, U.S. accounts for 60 percent of export revenue and Europe 30 percent, adding "continental Europe and Japan are the next wave of opportunities for Indian I.T. cos". PTI PML
The exports grew slower hit by the global economic scenario of a sub-prime crisis, fears of a U.S. recession, resulting in slowing down of technology spending and the decline in growth rate is also likely to continue in thecurrent fiscal.
The overall I.T. revenue from domestic as well as overseas market is also likely to grow more slowly at 21-24 per cent in 2008-09, the industry body Nasscom said Wednesdayin its guidance.
The software and services exports segment grew by 33percent in 2006-07.
The overall I.T.-B.P.O. industry, including the domestic market, recorded 28 percent growth to touch 52-billion-dollar revenue in FY'07-08, which is also lower than the 30.7 percent growth in 2006-07. In 2008-09, this growth could slow down to 21-24 percent, National Association of Software and ServiceCompanies (Nasscom) said Wednesday.
Acknowledging slowdown in decision-making, Nasscom President Som Mittal said the lower growth rate on a higher base revenue is not a bad situation as external situations like oil price rise, global economic slowdown are outside one's control and India being a part of global delivery chaincannot be insulated from these developments.
"Some slowdown in decision-making is seen. There will be a natural reduction in growth rate. On a larger base a few percentage point reduction in growth rate will be seen as robust," he said, adding there could be some revival in thelater half of 2008.
"While U.S. slowdown and its impact on key markets is still a concern, indicators suggest a revival in tech-spending in the second half of 2008. Budget allocations will be moreback-end loaded in 2008," Mittal said.
While the expected slowdown in banking and financial services continues, clients in other sectors likemanufacturing and healthcare indicate higher growth, he said.
"The Indian I.T.-B.P.O. industry's resilience is reflected in its FY'07-08 performance, with a 28.2 percent overall growth rate and next year's projected growth between21-24 percent.
"Given that we are well on our way to achieve the target of 60 billion dollars in exports by FY'09-10, the industry is now focusing on improving productivity, efficiency, as well asopening up new markets and services," Mittal said.
This fiscal, the exports is on course to reach50-billion-dollar target.
Within the export segment, I.T. services exports have grown by 28 percent to clock revenues of 23.1 billion dollars while B.P.O. exports are up by 30 percent registering revenue of 10.9 billion dollars. Engineering services and products exports clocked revenues of 6.4 billion dollars, growing 29percent.
"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 prepareourselves for these," he added.
Tata Consultancy Service remained the top software andservices exporter followed by Infosys and Wipro. The B.P.O.
exports clocked 30 percent increase to reach a revenue of10.9 billion dollar.
He said, at present, U.S. accounts for 60 percent of export revenue and Europe 30 percent, adding "continental Europe and Japan are the next wave of opportunities for Indian I.T. cos". PTI PML
