India's exports of software and services such as call centers and back office operations totalled $US23.6 billion in the year to March 31, up by 33 percent from a year earlier, the National Association of Software Companies (Nasscom) in Delhi announced Thursday.
Preliminary estimates released by Nasscom in February had indicated that the growth in export revenue was 32 percent.
Nasscom is also upbeat about revenue growth in the country's software and services industry for the year ahead. The country's exports of software and services are expected to grow by 27 to 30 percent in the year to March 31, 2007, to a total of between $US29 and $US31 billion, Nasscom said.
The domestic market for software and services is also projected to grow by 20 percent on account of e-governance projects, and investments in IT by the health care and retail sectors.
The country has emerged as a major hub for offshore software development, call centers, and back-office operations, as foreign companies have outsourced to Indian companies or set up their own development or services centers in the country. The figures released by Nasscom include revenue of both Indian subsidiaries of multinational companies and those of Indian outsourcing companies.
Of the total exports in the year to March 31, exports of software and related services grew by 33 percent to $US13.3 billion, while revenue from call centers and business process outsourcing (BPO) grew 37 percent to $US6.2 billion. Engineering services and product exports earned $US4 billion, up by 27 percent from the previous fiscal year.
Revenue from software and services delivered in the domestic market grew by 25 percent to $US6 billion.
The country's software and services sector employed 1.3 million as of March 31, of which 930,000 were employed in the export sector. Indirect employment by the software and services sector was 3 million.
India's revenue from exports of software development, call centers and back-office processing will grow by 25 percent a year to $US60 billion by 2010, according to a study last year by Nasscom and consulting firm McKinsey and Co. The country will however have to work around an anticipated shortage of 500,000 staff by 2010, and infrastructure bottlenecks, the report added.