IT and Software services grow by 31 per cent: NASSCOM Survey

New Delhi, June 1 (UNI) The Indian Information Technology (IT) and IT Enabled Service (ITES) industry (including domestic market) grew by 31 per cent with revenues of 29.6 billion dollars in FY 2005-06 as compared to 22.5 dollars billion in 2004-05, a NASSCOM survey showed.

The Indian IT-ITES industry has recorded 33 per cent growth in export revenues of 23.6 billion dollars in FY 2005-06 as compared to 17.7 billion dollars in FY 2004-05.

Of the total IT-ITES exports in FY 2005-06, IT software and services grew by 33 per cent, registering revenues of 13.3 billion dollars while ITES-BPO segment clocked revenues of 6.2 billion dollars, recording a growth of 37 per cent.

Engineering services and product exports grew from 3.14 billion dollars in FY 04-05 to 4 billion dollars in FY 05-06. Domestic market clocked revenues of 6 billion dollars in FY 04-05 from 4.8 billion dollars in FY 05-06.

The survey also projected overall software and services will grow by 25-28 per cent clocking revenues of 36-38 billion dollars in FY07, while the IT-ITES exports are likely to grow by 27-30 per cent in FY 06-07, posting revenues between 29-31 billion dollars.

''The excellent performance of the Indian software and services industry once again reinforces our confidence that the industry is on course to meet the projected target of 60 billion dollar exports by FY 10, as projected in the NASSCOM McKinsey Report. This growth is also reflected in the employment trends, both direct and indirect which according to our estimates is to the tune of 4.3 million.'' NASSCOM President Kiran Karnik said.

''However, along with the opportunity, there are a challenges that call for focused efforts. These include concerns about the quality and skill sets of graduates, infrastructure, maintaining the attractiveness of India for IT investments and steps to boost the domestic market,'' he added.

UNI MP CS RK1815