India enjoys IT boom

Fresh evidence of the boom in offshore outsourcing emerged last week with news that India's software and services exports have...

Fresh evidence of the boom in offshore outsourcing emerged last week with news that India's software and services exports have grown by 26%, reaching $9.5bn (£5.8bn), according to estimates from the Delhi-based National Association of Software and Service Companies (Nasscom).

The growth in revenue from business process outsourcing services reflects a growing trend by US and European companies to outsource services such as call centres and back-office operations to their Indian subsidiaries and other companies in India.

Revenue from BPO and related services grew by 59% to $2.3bn, while revenue from the export of IT services such as software development grew 18.3% to $7.2bn.

Software development and design services business grew at a slower pace in the year to March 2003, compared with the 22% growth in revenue posted by the previous year. The same measure hit 50% three years ago.

IT services margins are also under severe pressure, and will go down further said Kiran Karnik, president of Nasscom.

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