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Indian IT services market to touch $9 billion by 2005

Indian information technology companies are poised to earn revenues up to $9 billion from the international software services market by 2005, a global consultancy firm says.

A joint study by the National Association of Software and Service Companies and BCG, a leading consultancy major, also predicts that the domestic market for E-solutions will grow from a base of $65 million in 2000 to $500 million in 2005.

The report, titled "Imperatives for India Inc to harness the E-commerce opportunity," will be released at "E-biz India 2001," a national conference on E-commerce and E-Business to be held at Bangalore from August 2-3.

"The report provides a road map for India Inc to realise the value from E-commerce and become globally competitive. But the domestic market is crucial for global leadership," said James Abraham, BCG's vice president and director.

Commenting on the study, NASSCOM chairman Phiroz Vandrevala said: "To exploit the E-solution services opportunity, Indian IT companies will need to build expertise in product applications and modify their strategy to market e-solutions."

The report revealed that while the Indian industry was gearing up to build capabilities for e-commerce, there were vast differences among players on their understanding of e-commerce benefits.

The worldwide market for e-solutions products and services, estimated at $180 billion in 2000, is expected to grow to $640 billion by 2005.

NASSCOM is an association of around 870 software companies that collectively contribute to more than 95 per cent of revenues of Indian software industry.

Indo-Asian News Service

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