IT s/w, services revenue to reach $50bn in FY08

* Industry records a revenue of USD 39.6 billion in FY 2006-07; exceeds forecast of 27% to register a growth of 30.7%

* Industry revenues projected to grow at 24-27% in FY 2007-08

* TCS, Infosys and Wipro maintain their position as the Top 3 exporters in the NASSCOM Top 20 IT software and services exporters rankings

Mumbai, July 2 2007: NASSCOM, the chamber of commerce and "voice" of the IT software and services industry in India, today announced the findings of its annual survey on the performance of the Indian software and services sector (excluding hardware) and outlook for FY 2007-08. As a part of the survey, NASSCOM also released the annual ranking of Top 20 IT Software and Service exporters in India in FY 2006-07 (excluding ITES-BPO revenues). TCS maintained its position as the leading exporter followed by Infosys and Wipro respectively.

According to the annual NASSCOM survey, the Indian IT-ITES industry (including domestic market) recorded an overall growth of 30.7% as against a projected growth of 27%, clocking revenues of USD 39.6 billion in FY 2006-07 up from USD 30.3 billion in FY 2005-06. The software and services exports segment grew by 33% to register revenues of USD 31.4 billion in FY 2006-07 up from USD 23.6 billion in FY 2005-06. The domestic segment grew by 23% to register revenues of USD 8.2 billion in FY 06-07 up from USD 6.7 million

Within the export segment, IT services exports have grown by 35.5% to clock revenues of USD 18 billion; while ITES-BPO exports up by 33.5% registering revenues of USD 8.4 billion. Engineering services and products exports clocked revenues of USD 4.9 billion, growing at 23% in FY 2006-07.

The survey also projects that the overall IT software and services sector will grow by 24-27% clocking revenues of USD 49-50 billion in FY08.

Speaking on the industry's performance, Mr. Lakshmi Narayanan, Chairman, NASSCOM and Vice Chairman, Cognizant Technology Solutions, said, "The Indian software and services industry continued its outstanding performance in FY07. Marked by double digit growth, FY 07 witnessed India's enhanced role in global trade with continued momentum in new contracts and renewals, increased traction in a broader range of services, expansion of geographic footprint, increased mergers and acquisition, both domestic and cross-border, and heightened interest among private equity investors to drive newer growth opportunities. The industry continued to be amongst the largest employers, directly employing more than 1.6 million and indirectly creating employment opportunities for an additional 6 million people in related industries. The industry also significantly impacted socio-economic development by contributing 5.2% to the national GDP"

Talking about the prospects of software and services industry in the current fiscal, Mr. Kiran Karnik, President, NASSCOM, said, "The software and services industry continues to exceed forecasts year after year and we are confident that the forecast (exports + domestic market) of USD 50 billion in FY07-08 will be achieved, as will the target of USD 60 billion exports by FY09-10. From a market opportunity perspective, the indicators continue to be positive with a potential addressable market of over USD 300 billion, driven by growth of existing business and new services line opportunities. While India continues to be the most preferred destination for global IT sourcing due to its talent pool, top-quality management and security and quality focus, there are certain short to medium term challenges that need to be addressed swiftly. These include rupee appreciation, suitability of available talent, infrastructure development and sustenance of a positive policy/regulatory environment. These require timely, consistent and continued effort from all stakeholders including industry, government, academia and NASSCOM".