Indian IT industry to cross Rs 1 lakh crore this year

NASSCOM has projected that Indian IT industry would cross Rs 100,000 crore

this year with CAGR of 28%. The hardware sector would contribute 21.2% to the

overall pie while ITES´ share would be 20%. ITS would continue to dominate the

industry with contribution of 58.8%.

NASSCOM President, Kiran Karnik said that today IT and ITES sector

contributes around 4% to India´s GDP. NASSCOM has also said that out of the

estimated $28.3 billion that the industry would generate this year, the domestic

industry would contribute 10.2%, while exports 18.1%. Last year, the ratio was

8.2:13.3 respectively. Of the domestic IT-ITES revenue pie, hardware would

contribute 52.1% and software and ITS´ share would be 4.8% and 37.6%

respectively while ITES would contribute 5.5%.

In IT-ITES exports, ITS is dominating with 67.7% and ITES with 28.4%.

Hardware contribution is 3.9%. As far as geographies are concerned, US is still

the



major export destination for companies with 69% share followed by Europe with
23%.

KIRAN KARNIK Expecting upsurge in domestic IT market with localization efforts out-in by Microsoft and Redhat

Out of the total outsourcing pie of $39.6billion, India is contributing the

most with $17.2 billion followed by Canada with 12.6%.

This year since offshore is getting prominence in the industry, the offshore

and onshore mix is going to be 71:29 % respectively as compared to last year's

64:36 %. The knowledge professionals have been increased to 1,045,00 from

842,000 last year.

According to NASSCOM, the trend is clear that there is going to be an upsurge

in the domestic IT market with localization efforts out-in by Microsoft and

Redhat. The return of venture capitalists like General Atlantic and OAK hill

buying 60% in GECIS is good sign for Indian IT industry.

But, according to NASSCOM, there are things that need to be focused on like

delivery capabilities in low cost geographies, operational excellence at the

activity, function and business level, consultative selling capabilities to

complement existing relationships. partnerships with hardware and software

providers, a global workforce with global track careers and the domestic market.

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