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.