NASSCOM: India’s Software Exports On The Rise

February 11, 2011

According to published reports, software and services exports from India are on the incline – about 16 to 18 percent in the year up t March 2012.

India’s trade body, NASSCOM, says that the demand for outsourcing from the West is till robust. The National Association of Software & Services Co.s speculated export revenue from $68 billion to $70 billion for India’s flagship industry in the financial year 2012.

Some of the clients included in India’s IT segment are General Electric, Citigroup might see an increase of 18.7 percent to $59 billion in the financial year, 2011, said NASSCOM.

In January, India’s top two exporters of software, TCS and Infosys had reported that their businesses were running strong this year. However, they expected concern over the impending debt crisis in Europe. They believe that a heightened inflation in this region would contribute to a lag in growth.

With the demand from the U.S. market – i.e. banking and financial industry – growing, India’s share in global outsourcing market climbed from 55 percent in2010 from 51 percent in 2009. reported NASSCOM. This is an indication of a potential recovery since outsourcing witnesses export and revenues growth 13-15 percent for the current fiscal year.

Som Mittal, president of Nasscom, said in a news conference that it had been an incredible rebound. He was also quick to dispel any worries that the protectionist sentiment in the U.S. had a significant impact on outsourcing. Rather, U.S. firms needed to outsource in order to cut costs.

He added that the media hype about anti-outsourcing sentiment in the U.S. had been rhetoric, since businesses were ready to act if they needed to outsource. They were not stopped by the overshadowing debates about outsourcing.

In the current fiscal year, the U.S. share of outsourcing was up by a percent to 61.5 percent, reports AFP.


Comments

Got something to say?