Indian Software, Services Exports Could Hit $75 Billion

Feb. 1, 2007
India holds over 50% of the global market in offshore services.

If the annual rate of 30% growth continues for India's software and services exports continues it could hit $75 billion by 2010. The National Association of Software and Services Companies, or Nasscom, said it was sticking to its official forecast of achieving $60 billion in exports by 2010. But "if we continue to grow at these levels, that number can be much higher" and "we have the potential to go up to $75 billion" by 2010, Nasscom chairman Ramalinga Raju said.

The latest Nasscom comments came as the group unveiled a report by global consultancy McKinsey which said "operational excellence" was crucial to India achieving its potential in software and services offshoring. The report entitled, "Operational Excellence: The Next Frontier in Offshoring," found that 80% of customers are satisfied with the performance of their offshore units. But the report said improvements in service were needed to ensure continued high-level export growth and to cut costs.

"Customers are highly satisfied with remote centers and as a result are ramping up operations in India (but) it is also clear that their expectations are rising," said Raju. While clients focus initially on cost and quality, "their priorities shift rapidly" to more sophisticated needs "like innovation and productivity," the report said. The industry needs to focus on improving "upstream services" such as "solution design" as well as on training, the report said.

India holds over 50% of the global market in offshore services but "we have to keep raising the (performance) bar," said Nasscom president Kiran Karnik.

India has become the world's back office, as Western firms set up call centers, number-crunching and software development outlets. Companies routinely cut costs by shifting their work to India to tap its pool of English-speaking, computer-savvy graduates at lower salaries than counterparts abroad. While wage costs in the outsourcing sector were rising by 15% to 18% annually, this did not pose a big problem for India remaining competitive as the increases were from a low base, McKinsey said.

The Indian information technology industry has grown its overall revenues 10-fold in the past decade to $47.8 billion in 2006-07 from just $4.8 billion 1997-98, Nasscom has said.

Copyright Agence France-Presse, 2007

Popular Sponsored Recommendations

Discover how cloud-based PLM with Teamcenter X drives innovation and collaboration

May 4, 2023
Manufacturers face challenges to stay competitive in a rapidly changing world. Discover how PLM software enables manufacturers to harmonize their teams with a single software ...

Future-Proofing Your Business with Smart Manufacturing

Jan. 2, 2024
An IndustryWeek-Plant Services-Smart Industry-Automation World-hosted webinar sponsored by Amazon Web Services

HCM and Digital Scheduling Technology: An Underutilized Solution for One of Manufacturing’s Biggest Challenges

April 2, 2023
Digital scheduling tools available via advanced Human Capital Management solutions offer compelling ways to improve production-line workforce retention, engagement, and productivity...

Beware Extreme Software

Sept. 24, 2023
As a manufacturer, you understand the importance of staying ahead of the curve and being proactive in your approach to technology. With the rapid pace of change in the industry...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!