Search the Internet          Tips  Sites: Finance, Investment

IT-enabled services revenue up 70 per cent, touches Rs 41 billion

BS ICE Bureau

Beating the industry expectations, India's IT-enabled services industry has grown by more than 70 per cent to touch Rs 41 billion in 2000-01.

According to a survey conducted by the National Association of Software and Service Companies, the size of the Indian IT-enabled services industry in 1999-2000 was at Rs 24 billion.

"Not only has this sector achieved its highest growth ever in terms of revenues, but also exceeded industry projections by almost Rs 1 billion," Nasscom said in a statement on Sunday.

IT-enabled services also increased its share in the total revenue of Indian IT software and services industry from 6.5 per cent in 1998-99 to almost 10.6 per cent in 2000-01.

"As per the Nasscom-McKinsey report, IT-enabled services will account for over 20 per cent of the total revenues of the IT software and services industry by 2008," the Nasscom statement, quoting chairman Phiroz Vandrevala, said.

According to the survey, customer interaction services, including call centres and customer support centres, were the main areas of growth during 2000-01.

"In fact, customer interaction services continued to be the fastest growth segment within this sector with a growth of 112 per cent over 1999-2000," the survey points out.

Back office operations revenues grew at a rate of 42.1 per cent from Rs 9.50 billion in 1999-00 to Rs 13.50 billion in 2000-01. The Nasscom survey also points out that the number of people employed in this sector touched almost 70,000.

Sectors like content development, animation, engineering and design have almost doubled to Rs 16 billion for the year 2000-01 from Rs 8.20 billion in 1999-00.

Revenues from other services including remote education, data search, market research, network, consultancy and management stand at Rs 1.40 billion in 2000-01, Rs 300 million up from the year 1999-2000.

Similarly, revenues from transcription and translation services stand at Rs 1.60 billion in 2000-01 against the Rs 1.20 million in 1999-2000.

Nasscom has also announced its plans to host Nasscom's India IT-enabled Services 2001, a convention on IT-enabled services, scheduled to be held on May 30 and 31 at Madras. The theme of the event is "generating one million jobs by 2008."

"This year's event's theme has been identified and encouraged by the impressive performance of this sector. Nasscom would be working closely with government and industry to promote and globally position this sector," Nasscom said in a statement.

"In order to sustain this growth and achieve the next level, the industry will have to focus on critical issues such as quality standards, infrastructure, marketing strategies and government policies. Therefore, Nasscom has decided to bring together leading Indian and international experts at Nasscom's India IT enabled services 2001 to discuss and help provide a roadmap for making this sector the biggest success story ever," said Arun Seth, chairman, Nasscom's India IT enabled services 2001.

Some of the critical issues that are proposed to be addressed are global roadmap to remote processing, the HR challenge, third party outsourcing, building the brand of India as a hub of remote processing, setting global standards and productivity issues among others.

Powered by

YOU MAY ALSO WANT TO READ:
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report