Resurgent software exports, lucrative global deals, huge investments, acquisition, a quite burial to the outsourcing outcry and low-cost computers marked the year 2005 for the information technology industry, which also had its share of blots that threatened to mar the booming business process outsourcing story.

The Indian software and services export is estimated at Rs 78,230 crore ($17.2 billion) in 2004-05, as compared to Rs 58,240 crore ($12.8 billion) in 2003-04, an increase of 34 per cent.

This segment will continue to show robust growth in future also. IT exports are likely to grow by 30-32 per cent in dollar terms during 2005-06.

The production of the Indian electronics and IT industry is estimated at Rs 148,360 crore (Rs 1483.60 billion) during 2004-05, as compared to Rs 118,290 crore (Rs 1182.90 billion) during the year 2003-04, a growth of 25.4 per cent, according to government estimates.

Export revenues from ITeS-BPO grew from $2.5 billion in year 2002-03 to $3.6 billion in years 2003-04 and $5.1 billion in the year 2004-05.

The number of professionals employed in India by IT and ITeS sectors is estimated at 1,045,000 as of March 2005.

According to the latest Nasscom-McKinsey survey, which predicts that IT and ITeS would add 7 per cent to India’s GDP by 2010 along with creation of 8.8 million new jobs, the export revenue from the sector is projected to more than treble to $60 billion by 2010.

At present, the sector contributes about 3 per cent to the GDP and employs 700,000 people. Hiring in the sector continued unabated and looks to increase in the coming years - a sign of vigorous growth.

TCS, Wipro and Infosys plan to raise their workforce by over a third in the next 12 months by hiring 50,000 employees.

However, a shortage of skilled workers will be staring the Indian industry, particularly the BPO sector, in the face in the next decade, the Nasscom-McKinsey report said.

If these targets are achieved, the IT sector would also account for over 44 per cent of the export growth over the next five years, compared with 12 per cent now, it said.

The Nasscom-McKinsey report predicts that IT and ITeS sector would add 7 per cent to India’s GDP by 2010 along with creation of 8.8 million new jobs.

While the offshore IT solutions business will grow at 25 per cent to touch 35 billion USD in export revenues, the BPO business will witness a CAGR of 37 per cent to account for $25 billion of the projected $60 billion.

The report, however, did not include the domestic market and product technology business, which would together account for another 20 billion USD in revenues by 2010.

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