Indian IT-ITES (software and services only) industry continues to chart remarkable double-digit growth and has reached $22 billion (includes exports + domestic market estimates) in annual revenues in FY 2005, according to NASSCOM.

The leading publicly listed players have reported a top line year-on-year growth of nearly 32% in the first half of 2005. Additionally, large MNC owned captive units have been scaling up their operations steadily with the headcount projected to grow by at least 30% this year.

Spending in the domestic market is also witnessing steady growth with spends on services coming into their own – reflecting sound optimism for the year-end results. The Indian growth story stays even though there were signs of occasional uncertainty in the media over the past few months, Indian IT-ITES has maintained its high growth graph with the industry aggregate estimated to cross $27-28 billion in the current fiscal (FY2005-06), with an annual growth of at least 25%.

In spite of the growth seen so far, it is estimated that less than 10% of the addressable market for globally sourced IT-ITES has been captured till date, indicating significant headroom for growth. Strong fundamentals coupled with proactive initiatives by key stakeholders will ensure that India remains the leading destination and an indispensable part of all significant global sourcing strategies.

During 2005, NASSCOM has initiated steps to increase partnership opportunities between emerging companies IT and to ensure continued development of the IT industry and ensure availability of globally employable quality IT professionals among others.

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