Software exports go up by 26%

The predictions about a lower growth in the IT software sectors seems to have come true with Nasscom announcing a 26.3 per cent exports growth for 2002-03 as against projected growth of 30 per cent. The recent stock market mayhem and the fall of the IT giants had already indicated that things were not too good for the sector. Perhaps taking the precaution forward, Nasscom has also given a rather cautious projection of 28 per cent for 2003-04. IT Services, Products & Technology Services are projected to grow by 17 per cent to reach revenues of over $8.4 billion and the ITES-BPO segment is projected to register a growth of 54 per cent with a revenues of $3.6 billion next year.

Of the Rs 46,100 crore exports revenue clocked in 2002-03 IT services and products grew by 18.3 per cent to reach Rs 34,800 crore while IT-enabled services registered a growth of 59 per cent to touch Rs 11,300 crore. “I am satisfied with 26.3 per cent growth… It is a strong and vibrant growth rate given the economic situation and a stronger rupee,”Nasscom president Kiran Karnik told reporters in New Delhi.

In dollar terms the exports growth in 2002-03 was 25.3 per cent at $9.5 billion. Although, Nasscom is in the process of compiling the domestic software revenue data, Karnik said that the growth rate would range between 12-13 per cent at $2.5 billion in 2002-03. According to Nasscom, STPI has been a major contributor to IT growth and now accounts for 80 per cent of software exports.