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Software exports to exceed Rs 110 billion

Indian software exports are set to exceed Rs 110 billion by the end of this fiscal.

An analysis by the National Association of Software and Service Companies claims

T O D A Y

• Wisdom 3.0 • Software exports boom • Infosys bonus issue • MP's IT education drive

that Indian software exports have remained unaffected by industrial recession and have already crossed export revenue of Rs 77 billion during the first nine months of the current fiscal ended December 1998.

"In dollar terms, the growth expected this year would be around 51 per cent while it would be slightly better, about 68 per cent, if the growth is taken in rupees. Exports are always highest in the last quarter," said Dewang Mehta, president, NASSCOM.

The Indian software industry posted an export turnover of Rs 65.3 billion in the last fiscal.

However, the software product and packages sector took a slight beating while recording a percentage dip from a 9.1 per cent growth to 8.8 per cent during the period under review.

The reason, say experts, is that software services sector has grown faster than products and therefore, in percentage terms, the products market has recorded a dip.

According to NASSCOM's analysis, offshore software development would increase from 36 per cent of the total exports of Rs 65.3 billion during the last fiscal to 41 per cent of the total exports of Rs 110 billion expected in this fiscal.

The reason why this segment would surge in future is on account of opportunities thrown open like the one on account of euro which would involve a lot more offshore software development, say experts.

Many Indian software firms have already started scaling up their operations for seizing the euro business opportunity.

According to Sunil Wadhwani, chairman, Mastech, though the euro opportunity is smaller than the Y2K problem, Indian companies are well positioned to seize a sizeable chunk of it.

Dewang Mehta, echoing Wadhwani's viewpoint, said: "The euro opportunity is going to be tackled from the US, India, China, Japan and Australia. For firms looking for solutions in euro, China and Japan pose language problems, US is an expensive proposition while India has a better advantage over Australia."

- Compiled from the Indian media

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