| According to a Nasscom report released on Thursday, the size of the software and services market rose 31 per cent. The total income of this sector increased to $29.6 billion, up from $22.5 billion in 2004-05. |
| Nasscom expects the good performance to continue. It has projected that overall software and services will grow by 28 per cent, clocking revenue of $36-38 billion in 2006-07. Export are likely to grow by 27-30 per cent, posting revenue between $29 and $31 billion. |
| Nasscom President Kiran Karnik said there was still a huge potential to be tapped. "With less than 10 per cent of the market currently addressed, a large market opportunity exists, which will ensure sustained demand led growth," he said. |
| Karnik added that factors such as evolution of global delivery models, unbundling of large IT outsourcing deals and larger share of India in these deals during the next two years will drive growth in this sector. |
| The total number of people employed in software and IT enabled service sector, including the BPO sector, has increased 22.32 per cent to 12,93,000 in 2005-06 compared with from 8,67,000 in the previous year. |
| The workforce growth has slowed down for the IT software and services to 18 per cent in 2005-06 from 21 per cent in 2004 -05. |
| Export growth in this sector during 2005-06 was fuelled by the IT-enabled and BPO sector, which showed a 37 per cent growth. Export revenues from this segment grew to $6.3 billion from $4.6 billion in 2004-05. |
| Even IT service export registered a substantial growth of 33 per cent. Revenues from exports went up to $13.3 billion from $6.2 billion. |
| Of the total software and services exports last year, IT services grew by 33 per cent, registering revenues of $13.3 billion. The ITES-BPO segment clocked revenues of $6.2 billion, recording a growth of 37 per cent. |
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