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IT-ITeS industry revenue at $39.6 billion in 2006-07, up 30.7%

  • IT-ITeS industry revenue at $39.6 billion in 2006-07, up 30.7% .
  • Expected revenue in 2007-08 : $50 billion at a growth rate of 27%.
  • Software and services exports revenue in 2006-07 $31.4 billion, growth of 33%.
  • Domestic software & services segment $8.2 billion, growth of 23%.
  • Within exports, IT services touched $18 billion, a growth of 35.5%, while ITeS/BPO exports grew by 33% to clock revenue of $8.4 billion.
  • Engineering services and products exports registered a revenue of $4.9 billion, up 23% over the previous year
  • Contribution to country's GDP estimated to be 5.4%, up from 4.8% last year.
  • The sector witnessed 135 merger and acquisitions (M&A) deals worth about $3 billion in the calendar year 2007.
  • Private Equity investments in the sector – more than $1 billion in 2007.
  • Tata Consultancy Services Ltd (TCS) at $4.55 billion is India's largest IT services company with revenue growth of 40.6% in FY 2006-07.
  • TCS has a market value of $26.83 billion, is almost double the market value of Electronic Data System Corp. (EDS), U.S. based global IT services company at $14.47 billion.
  • Infosys market value at $27.04 billion is also higher than the market value of EDS Corp.
India’s Installed PC-Base Grows to 22 million                                 2nd July 2007

  • Total installed base of PCs in India has grown to more than 22 million
  • Desktop PC segment registers 11% year-on-year growth in 2006-07.
  • Notebook PC segment expands by 85.6% year-on-year during 2006-07.

IT Spend By India’s Mega-Spenders Rises 27% In 2006-07          
7th June 2007

  • The top 226 Indian companies spent Rs.7,123 crore ($1.73 billion) on deploying Information Technology systems in 2006-07, a growth of 27% over the previous year
  • The IT investments made by mega-spenders in 2006-07 make up more than one-tenth of the total domestic IT/ITES industry that registered sales of Rs. 68,411 crore ($16.68 billion) in 2006.
  • The top Indian enterprises are expected to invest 26% more on IT taking the combined spend to Rs.8,974 crore ($2.2 billion) during 2007-08
  • More than half the top 50 spenders on IT during 2006-07 were public sector undertakings (PSUs)
  • About 42% of the total spend on IT was on hardware, while expenditure on packaged software and services software stood at 26% each
 
India’s IT export to touch $60 billion by 2010                    13th February, 2007  

 
  • India’s information technology (IT) and business process outsourcing (BPO) exports well on track to reach the target of $60 billion by 2010.
  • Indian IT industry expected to grow at 31% in 2006-07.
  • Exports in the IT industry is estimated to grow to $32 billion in 2006-07 from $24 billion in 2005-06, up 33%.

Record personal computer (PC) sale in July-September 2006 (Q2)                
                                                                          13th February, 2007

  • PC sales exceeded 1.75 million units in the second quarter (Q2) ended September 2006.
  • PC sales in Q2 grew 46% compared with the previous quarter of April-July 
    2006 (QoQ), and 19% year-on-year (YoY).
  • Desktop PC sales crossed 1.5 million units in Q2, up 48% QoQ.
  • Total PC sales projected to cross 6.5 million units in fiscal 2006-07.

IT Services and BPO exports from India forecasted to rise by 26% in 2007                                 
                                                         16th January, 2007

  • Export of information technology (IT) services and business process outsourcing (BPO) from India to grow by 26% to $33.4 billion compared to $26.5 billion in 2006.
  • Software and related services exports to touch $21 billion in 2007 compared to $17 billion in 2006, a growth of 21.6%.
  • BPO segment is expected to grow at 34% to reach at $12.6 billion in 2007 against $9.4 billion last year


Electronic Manufacturing Services set for a boom in India      
October 26, 2006 
 
  • Printed Circuit Board assembly and Original Design Manufacturing set to grow to $2.5 billion by 2010.
  • Much of this growth is because of the increasing demand for telecom equipment like mobile handsets.
  • The demand in turn is prompting global electronics manufacturing service providers like Flextronics International, Jabil Circuits, Elcoteq SE and Soleqtron, to establish manufacturing bases in India.
  • Hon Hai Precision Industry, the largest manufacturer of connectors for use in PCs in Taiwan and San Jose, California headquartered, Sanmina-SCI leading electronic manufacturing service provider Sanmina-SCI are in the process of setting up their units.
  • Jabil Circuits has plans to invest up to $100 million in India over the next few years.
  • Domestic companies like TVS Electronics, Chennai, capital city of the south Indian state of Tamil Nadu-based computer peripherals manufacturer are also expanding their operations.

India to capture 15% of $54-billion global KPO industry pie  
                                                                                            
September 01, 2006

 

India is likely to capture around 15% of the more than $54-billion knowledge process outsourcing (KPO) industry worldwide by 2010 from the current 5%. It is estimated that the total market size of KPO business in India may rise to $15.5 billion, up from $1.2 billion now. Also, there will be a 45% growth rate in the Indian KPO segment vis-à-vis 25% in the business process outsourcing (BPO) segment. The KPO industry will generate 250,000 jobs in the next five years.


Legal Process Outsourcing: India high on foreign companies’ list 
                                                                                            
September 01, 2006

 

The total U.S. legal offshoring business amounts to $25-billion and India is well positioned to tap this sector. India can earn the combined revenue of $4.7 billion from U.S. private law firms and corporations by 2011-12. About 33,000 more lawyers are needed by law firms to achieve this target, while there are only 50-60 LPO firms employing 700 lawyers currently. The current legal offshoring content of the Indian LPO industry is worth $60-$80 million.


Software, ITES exports up 32% in April-June 2006                 August 16, 2006 

 

India’s software and services exports, including IT-Enabled Services (ITeS), has increased by 32.29% to about $6.4 billion (Rs. 29,500 crore) in April-June quarter as compared to the same period last year. Export of computer software and services including ITeS is expected to rise by 33% during financial year 2006-07 to about $30.5 billion (Rs. 140,000 crore) as compared to about $22.8 billion (Rs. 105,000 crore) during 2005-06.


India’s IT sector crossed $35 billion in 2005-06
                      August 16, 2006

 

The Indian IT sector has maintained its high growth of 33% in 2005-06 by clocking total turnover of about $35.5 billion (Rs. 164,000 crore). India’s software and services exports registered a growth rate of 33% to reach $17 billion (Rs. 78,134 crore) in fiscal 2005-06; while Indian IT exports grew at 36% during the same period to touch the mark of about $23.5 billion (Rs. 108,511 crore). Tata Consultancy Services (TCS), India’s largest IT services company remained at number one position with its revenue growing by 40% to $2.5 billion (Rs. 11,595 crore). TCS was closely followed by Infosys Technologies, country’s second largest IT services company which posted a 32% growth to clock revenue of about $2 billion (Rs. 8,977 crore) in 2005-06.


Online shopping growing faster than the growth of the Internet   
                                                                                               
August 01, 2006

 

The number of online shoppers is growing faster than the growth of the Internet in India. The number of Indians shopping online grew 42% in the year 2005, compared to the 22% growth in the number of Internet users. Roughly one fourth of the total user base i.e. 5.9 million internet users, did online shopping last year to spend an estimated $0.8 billion (Rs. 4000 crore). Approximately, 66% online buyers shop from home and account for more than half (56%) of the total online spend in India. 59% of the internet users came from middle-to-low income group, and about half were from outside the top eight cities, signaling that the Internet is now becoming a mass medium in India. More than 40% Internet users preferred an Indian language website. Cyber cafes were the access point for 46% users.


IT-BPO exports rise 33% at $ 23.6 billion in FY 2006                 
July 17, 2006

 

Exports of Indian IT services and IT-enabled services (ITeS) have grown 33% to reach $23.6 billion during 2005-06 (FY06), up from $17.7 billion in FY05. Of the total exports in 2005-06, IT software and services grew by 33% to $17.3 billion, while exports of the business process outsourcing (BPO) industry grew 37% to $6.3 billion. By the end of the financial year 2006-07 exports of software and services will increase to $21-$22 billion, while BPO exports will touch $8-$8.5 billion. The overall growth of the industry, including both exports and the domestic market, registered a 31% increase to reach $29.6 billion, up from $22.5 billion in 2004-05.


PC sales growing fast to reach consumers                                   
July 04, 2006

 

The overall Personal Computers shipment grew at 30% to cross 4.6 million units, in the year 2005-06. Interestingly, as a trend-reversal, consumer desktops grew at 33% compared to 15% growth in commercial desktops. Total Desktop PCs sales grew 21%, while Notebook PCs shot up by 168%.


Indian ITeS industry to touch $26 billion by 2009                        
July 04, 2006

 

The Indian information technology-enabled services (ITeS) industry is poised to touch $10 billion by 2006-07 and $26 billion by 2009-10. Corporates are expected to continue outsourcing many of their labour-intensive business process service tasks to developing countries like India to gain cost savings and quality advantages. The demand growth in the ITeS industry is likely to be export-led, with the domestic market also expected to grow at a rate in excess of 50%. However, lack of good infrastructure is the biggest challenge which the ITeS industry in India is facing.

 

 

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