Indian software and service export revenues are seen surging by 32% in the current financial year as global companies increase outsourcing, an industry group forecast Feb. 9. Software and service export revenues are forecast to climb to $23.4 billion for the fiscal year to March 2006 from $17.7 billion in the previous 12 months, the National Association of Software and Services Companies (NASSCOM) said in a report.
Kiran Karnik, president of the 900-member association, said India's software industry is on course to reach a target of $60 billion in sales by 2010. "There is enough headroom for future growth and only nine percent of the export market has been tapped to date," Karnik said in the report.
The total software sector is expected to account for 4.8% of Gross Domestic Product during this financial year. "The Indian IT sector continues to chart double-digit growth" thanks to increased outsourcing, NASSCOM chairman S. Ramadorai said. Engineering services and research and software products will remain the key drivers of sales growth, the association said.
The report forecasts India's software exports will grow an average 26% - 27% annually to the year 2010 while the domestic software market is seen growing 24% annually during the same period.
Copyright Agence France-Presse, 2006