India's software services and business process outsourcing (BPO) services business is booming.
India's software and services exports business recorded revenue of $12.5bn (£6.8bn) in the year to 31 March, up 30.5% over revenue of $9.6bn the previous financial year, according to data released by the National Association of Software and Service Companies (Nasscom) in Delhi.
The revenue figures include billings by Indian outsourcers and wholly owned software development and BPO operations in India of multinational companies.
The US and UK markets accounted for about 85% of revenue.
"Despite the challenges such as slow growth of IT spending globally, a jobless recovery in major markets and appreciation of the Indian rupee [against the US dollar], the Indian software and services industry has been able to maintain its growth momentum and consolidate its partnership with overseas customers, adding to their competitiveness," said Jerry Rao, chairman of Nasscom.
India's software and services exports are projected to grow by about 32% in the year to 31 March 2005, to reach revenue of more than $16.3bn.
Of the total software and services exports in the year, revenues from IT services, products and technology services grew by 25% with revenue of $8.9bn, while the BPO business grew by 46% to revenue of $3.6bn, and added 70,000 new jobs. BPO subsidiaries of multinational companies accounted for 65% of BPO revenues.
John Ribeiro writes for IDG News Service