India’s IT sector revenues will climb 32% to touch $52 billion during the current fiscal, the country’s apex IT body, the National Association of Software and Service Companies.
FY08 performance on back of strong domestic orders, says Nasscom
MUMBAI: Notwithstanding a slowdown in the US, India’s IT sector revenues will climb 32% to touch $52 billion during the current fiscal, the country’s apex IT body, the National Association of Software and Service Companies (Nasscom), said on Monday.
The revenue would exceed a July forecast of $50 billion after domestic orders surpassed estimates, the organisation, which may be soon known by its acronym ‘Nasscom’. The name change is planned as the organisation wants to shed the software services-specific image that the Indian IT industry has acquired. “Nasscom would now on imply an association of both software products and services,” a source said on condition of anonymity.
In its strategic review report, Nasscom said the domestic software market is likely to generate revenues of $11.7 billion during the current fiscal, surpassing an earlier forecast of $10 billion, and reducing the software firms’ dependence on the US, the world’s largest market.
The IT sector as a whole will account for 5.5% of the India’s GDP for the current fiscal year, Nasscom said.
On the name change, the Nasscom president Som Mittal won’t confirm nor would any of the officials in the IT trade body about the date for formal announcement. Sources said it may come after the annual Nasscom Leadership Summit in Mumbai.
The stress on products by Nasscom has been apparent on many counts. In 2006, it established a forum to bolster and handhold product design and development. In December 2007, Nasscom conducted the first-ever ‘product conclave’ to move up the value chain - from services to products.
Industry analysts consider that India’s current product development business of $1 billion can grow to $15 billion by 2015.
Experts believe niche products and innovation would be the two pillars to create a calling in the product arena.
Experts also look at larger global software services market that is untapped. This is where Mittal sees the product story in a different way.
Speaking to DNA Money, he said, “If Indian companies have to have a larger share of the addressable software service market of $380 billion, then, even services have to be productised.”
A revisit to the definition of product is a necessity in this regard, believes Mittal. “If a bank that is into banking and financial services industry, can call its services as products then software services too can have a product tag.” Mittal said software companies have to look at tapping opportunities in niche products. “Already there are many examples of products in software for mobile communications, recruitment processes etc,” he said.
t_amit@dnaindia.net
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