India’s IT services and business process outsourcing industry is booming, with revenues up 37% to more than $6bn (£3.2bn) last year, figures from trade body Nasscom have revealed.
Revenues in the sector reached a total of $6.3bn in 2005-06, contributing to India’s $23.6bn total for software and services exports, Nasscom’s annual survey of IT industry performance show.
Nasscom president Kiran Karnik said the industry’s growth in 2005-06 had “exceeded our forecasts”, reflecting strong demand. IT services and business process outsourcing revenues were expected to pass $8bn during the 2006-07 financial year, with revenues across the software and services industry reaching $36-38bn, he said.
“The growth in the sector is being driven by steady increase in scale and depth of existing service lines, the addition of newer vertical-specific and emerging niche business services, continued expansion of service portfolios and higher value processes,” Karnik said.
“In addition, the BPO industry has significant headroom to grow, with the offshorable potential being 12 times current revenues. The industry is likely to continue to witness an increase in merger and acquisition activity which could lead to a significant consolidation in the BPO industry, in the process creating world scale players.”