Software exports inch towards 50 bn: NASSCOM

Defying BPO kickbacks and a global tech slump, software and service firms inched towards their 50 billion export target, crossing 15 bn in...

Defying BPO kickbacks and a global tech slump, software and service firms inched towards their 50 billion export target, crossing 15 bn in 2003-04, a jubilant National Association of Software and Service Companies NASSCOM announced today.

8216;8216;Despite the world situation we have exceeded targets with revenues of 15.9 bn and exports of 12.5 bn in 2003-04,8217;8217; NASSCOM President Kiran Karnik said.

Of the total software and services exports in the last financial year, IT services products and technical services grew by 25 per cent to 8.9 billion while IT-Enabled Services ITES grew 46 per cent to 3.6 billion, remaining below estimates in the segment.

The association predicts its members will be worth as much as the telecom industry by 2005. 8216;8216;If we8217;re not already as big as telecom, we will be when we cross 20 bn next year,8217;8217; Karnik said.

Over 2003-04, the domestic software market also went off without a hitch and grew to 3.4 bn from 2.8 bn in the previous year. 8216;8216;The domestic market now only needs to be pump-driven by government and us,8217;8217; Karnik said.

	Non-tariff barriers sought

			8226; Overjoyed by 2003-04 and boosted by healthy projections, NASSCOM has a deluge of favours to ask of the powers that be. Apart from requests to 8216;8216;back-off8217;8217; from over-legislation it wants formal education to fine-tune to the software industry8217;s needs, retail trade to open for foreign investors and easier cross-border exchange of services and manpower. 8216;8216;Trade in services is growing faster than trade in goods. With 3 lakh graduates out every year, we8217;ll have a disproportionate advantage if the visa regime doesn8217;t become a non-tariff barrier. India must push for this at WTO and other such fora,8217;8217; said Jerry Rao.

A bullish NASSCOM said telecoms, automotive, retail and banking would drive the domestic market further, given the expected hardware infusion into small office-home offices SOHO and small and medium enterprises SMEs.

8216;8216;Retail will push software sales and services up, especially if the sector is opened up for foreign investment. The zero duty regime on hardware should also come into effect immediately, not by the WTO8217;s 2005 deadline, to increase software usage,8217;8217; Karnik said.

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NASSCOM Chairman Jerry Rao said 2003-04 was the best year for software and outsourcing since the slowdown. 8216;8216;The software business employed 65,000 to 70,000 new people last year and BPOs brought in 40,000 more people, and though rising wages exerted margin pressures, we saw no percentage decline in revenues,8217;8217; he said.

Roughly one-third of 2003-048217;s revenues are from SMEs, while the top three players, Infosys, Wipro and Satyam contributed to the usual 45 per cent. Roughly 8,10,000 people now work in software and aligned services, though twice this number were employed in ancillary industries like catering and transportation, NASSCOM said.