Buzzzzzzzz.......................... Headline Animator

Sunday, August 12, 2007

With Rupee Appreciating & Subprime mortgage meltdown in USA, will Indian IT Industry's estimates go for a toss

FY 2006-07 witnessed a revalidation of the Indian Information Technology – Business Process Outsourcing (IT-BPO) growth story, driven by a maturing appreciation of India’s role and growing importance in global services trade. Industry performance was marked by sustained double-digit revenue growth, steady expansion into newer service-lines and increased geographic penetration, and an unprecedented rise in investments by MNCs

IT Industry-Sector-wise break-up

USD billion

FY 2004

FY 2005

FY 2006

FY 2007E

IT Services

10.4

13.5

17.8

23.7

ITES-BPO

3.4

5.2

7.2

9.5

Engg Services & R&D, S/W Products

2.9

3.9

5.3

6.5

Total

Of which, exports are

16.7

22.6

30.3

39.7

12.9

17.7

23.6

31.3

Hardware

5.0

5.9

7.0

8.2

Total IT Industry

21.6

28.4

37.4

47.8


Global Markets: While US and UK remain the dominant markets for IT-ITES exports, revenues from newer markets are growing rapidly


FY03

FY04

FY05

FY06

Americas

69.10%

69.40%

68.30%

67.18%

Europe

22.20%

22.60%

23.10%

25.13%

Rest of the World

8.70%

8.00%

8.60%

7.69%

Our excessive dependence on USA could hit back in a big way. With Rupee appreciating and Subprime problem is USA, the expected export target of $47.8 billion for FY 07-08 already looks a lot shaky.

No comments: