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IT BPO revenues may cross $48bn
April 13, 2007 15:33 IST
The Indian IT-BPO sector, both in exports and domestic business, is expected to register a growth of 28 per cent in 2006-07 and revenues are likely to exceed $47.8 billion, nearly a 10-fold increase over the aggregate revenue in 1998.
The direct employment offered by the sector is likely to cross 1.6 million. In 1998, the aggregate IT-BPO revenue was $4.8 billion.
According to Nasscom Strategic Review 2007, IT services exports accounting for 55-57 per cent of total exports, are growing at 36 per cent and expected to reach $18.1 billion in 2006-07.
Newer areas of application and infrastructure management testing are gaining traction with their share in the business-mix growing rapidly. BPOs continue to grow in scale and scope with firms increasingly adopting a vertical focused approach.
Total BPO exports are expected to exceed $8.3 billion in 2006-07 growing by 32 per cent year on year. Increasing traction in offshore product development and engineering services is supplementing India's efforts in its own IP creation.
This group is growing at 22-23 per cent and is expected to report $4.9 billion in exports in 2006-07. The domestic market is also picking up.
The total size of the domestic market is expected to cross $15.9 billion in 2006-07 a growth of 21 per cent year on year.
Although this segment has been led by the multinationals in the past few years, Indian firms are gradually gaining ground.
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