Information technology and services industry

#INFORMATION TECHNOLOGY AND SERVICES INDUSTRY SOFTWARE#

Other countries like the Netherlands, Sweden and Australia also hold great possibilities. Countries like Canada, Japan, Germany and France represent huge growth potential. Indian companies have so far concentrated on only two largest IT service markets, viz., the U.S.A. There is good reason to believe that the present strong momentum will continue to drive the expansion of this industry. Findings of the survey conducted by NASSCOM indicate that the total value of outsourcing to India ($ 17.2 billion in 2004- 05) is as much as 44 per cent of the worldwide total. The domestic market, according to NASSCOM, grew by 24 per cent. Table 27.21Progress of IT Industry (figure in $ billion): YearДЄccording to NASSCOM, the industry is expected to register a growth of 30 to 32 per cent in the near future.

#INFORMATION TECHNOLOGY AND SERVICES INDUSTRY SOFTWARE#

The total software and services revenues grew by 32 per cent to $ 22 billion in 2004-05 and to $ 28.5 billion in 2005-06 (see Table 27.21). In the year 2004-05, the software and service exports from India registered a 34.5 per cent growth.

Software has become a major item of export in India. It is expected to generate total employment for four million people (including support services), account for 7 per cent of IndiaвЂ™s GDP and 30 per cent of IndiaвЂ™s foreign exchange inflows in the year 2008. This has increased its share of total Indian exports from 4.9 per cent in 1997 to 20.4 per cent in 2002-03. The Indian software and services industry is one of the very few sectors worldwide to have witnessed double digit growth (Fig. Its export grew by 26.3 per cent in 2002-03, clocking revenues of Rs 46,100 crore. The year 1995-96 was a boom year for the Indian computer industry and the Information Technology (IT) industry of India really exploded in that year.Дespite the challenges such as the continued technology slowdown in the global market, strong fundamentals and core value position of the software and services industry led to outperforming all other sectors in the country. Today, India is one country that offers cost-effectiveness, great quality, high reliability, speedy deliveries and, above all, the use of state-of-the-art technologies in software industry. There is now a critical mass of more than 500 software firms in the country and apart from these companies there are an additional 1,000 start-up-companies.

With a compound annual growth of about 52 per cent between 19, the Indian software sector has expanded almost twice as fast as the worldвЂ™s leading US software industry did, during the same periods, although from a smaller base.

Information technology and services industry