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Europe, Japan emerging preferred IT destinations

The International Data Corporation said on Wednesday that the US slowdown has affected the Indian software exports, but it is expected to revive by 2002, and Europe and Japan markets are emerging as preferred destination and key contributor to the Indian software exports.

By 2008, software and related services were expected to contribute over 7.5 per cent of India's overall GDP growth, manager (demand side research), IDC India Ltd, Utpal Ghosh, said at 'Directions 2002', the 14th annual computer industry briefing session in Bangalore.

Ghosh, speaking on 'Charting the Indian IT market', said that cost benefit in India had attracted many US-based firms to set up operations/development centres in India, and business outsourcing, back-office operations and customer interaction services would account for the major chunk of the export revenue.

Capital market initiatives in rolling settlement (Sebi guideline), introduction of trading in index and derivative would open up a new market type, he said.

With focus on distribution, the insurance sector would also resort to e-commerce, data warehousing/data mining and computerisation which would depend on 'VPN solutions' for fast and safe data access, Ghosh said.

The IDC study forecast that gloomy conditions in the tourism sector may slow down the tour, travel and hotel industries in India this year, but media is poised to witness a strong growth in the coming years driven by increasing cable TV subscriber base and introduction of DTH.

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