Indian IT Revenue Set To Exceed $28 Billion

Filed in archive on March 21, 2005

According to Nasscom's 2005's Strategic Review, Indian IT and ITES revenues is expected to exceed $28 billion in 2004 to 2005 from $21.5 billion in 2003 to 2004. The review stated that, "IT and ITES industry continues to chart double-digit growth... for the current fiscal [year and] is expected to reach 28.2 billion dollars."

Moreover, the report said that ITES-BPO is the fastest growing sector in global services with an expected worth of $5.7 billion in the 2005.

In a predicted breakdown of India's IT revenue, IT services and software will account for 58.6 percent while ITES-BPO will hold 20.1 percent. Additionally, hardware contributions are projected at 21.3 percent.

Notably, share of services now accounts for nearly 80 percent of Indian IT-ITES revenue, close to the global aggregate of approximately 75 percent.

The review also evaluated the Chinese IT industry, India's biggest rival. It said that the hardware dependent IT industry is expected to account for 84 percent of China's IT revenue in 2005. The Nasccom Review reported that this is an 89 percent fall from last fiscal year's numbers.