Indian software industry forecast to grow 33 percent; Europe to offset any US slowdown
India’s software service and outsourcing industries are likely to
grow 33 percent in fiscal year 2008, with new business in Europe to
offset any slowdown in the U.S. economy, according to a new study
released Monday.
Diversifying the services beyond the American
market would help the industry earn total revenue of US$64 billion
(euro53 billion) from April 2007 to March 2008, said Som Mittal,
president of the National Association of Software and Services
Companies, or NASSCOM, while releasing the study.
NASSCOM is the trade body of technology companies operating in India.
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The
United States remains the Indian software industry’s biggest market
with a share of 61 percent, said the ”Strategic Review 2008” by
NASSCOM.
Exports to Europe, however, have grown more than 55
percent since 2004, it said. The United Kingdom now accounts for 18
percent of India’s software services and continental Europe for 12
percent, it said.
The study also said that exports of software
and services are likely to cross US$40.8 billion (euro33 billion) for
the fiscal year ending March 31, while domestic revenues will touch
US$23.2 billion (euro19 billion).
”We are expanding our base and
this shows in the diversification of industry from English-speaking
countries to Europe and other nations,” said Mittal. ”The industry is
managing to grow and diversify geographically.”
The NASSCOM
study said companies that earlier provided services to traditionally
recession prone industries such as banking and telecommunication are
expanding to sectors such as retail, health care and entertainment,
which are less likely to be hit in a slowdown.
