IT, BPO sectors grow higher profile in GDP Charts

INDIA’S software and ITeS industry has together contributed 4.8% to the gross domestic product in 2005-06, according to a year-end review released by the ministry of communications and information technology. The industry’s contribution to GDP stood at 1.2% during 1999-2000.

Strong demand over the past few years has placed India among the fastest-growing IT markets in the Asia-Pacific region, says the year-end report. The industry has grown at a compounded annual growth rate (CAGR) of 28% during the last five years.

The business process outsourcing (ITeS-BPO) sector has emerged as a key driver of growth for the Indian software and services industry, says the report. The ITeS-BPO industry is likely to grow by about 37% in 2005-06 to reach $6.3 billion. In 2004-05, the industry grew by 48% to $4.6 billion.

The software and ITeS exports from India grew from $12.9 billion in the year 2003-04 to $17.7 billion in 2004-05. The total software and ITeS exports from India is estimated at $23.4 billion during the year 2005-06. Software and services exports have grown at 32% in dollar terms during 2005-06. The report also indicates a significant growth in the total number of IT and ITeS-BPO professionals employed in India. According to the report’s estimates, the number has grown from 284,000 in 1999-2000 to 1,287,000 in 2005-06 - growing by over 230,000 in the last year alone.

In addition, Indian IT-ITeS is estimated to have helped create an additional three million job opportunities through indirect and induced employment. Indirect employment includes expenditure on vendors, including telecom, power, construction, facility management, IT transportation, catering and other services.

According to the report, as of December 2005, over 400 Indian companies had acquired quality certificates for internal processes and practices. Of these companies, 82 are certified at SEI CMM Level 5 - this number is higher than that of any country in the world. Today, many Indian companies align their internal processes and practices with international standards such as ISO, CMM and Six Sigma, says the report.The report also projects a 21.8% growth in the production of software and electronics hardware.


Source : Economic Times